By Devika Patel
Knoxville, Tenn., July 16 - MRU Holdings, Inc. completed a $7.75 million private placement of a secured convertible promissory note on July 10 with investor Merrill Lynch Mortgage Capital Inc., according to an 8-K filed Wednesday with the Securities and Exchange Commission.
It also sold $5 million of secured convertible promissory notes to other investors in exchange for $4 million in cash on July 10 and a $600,000 note on July 15 in exchange for $500,000 in cash.
The Merrill Lynch note has a 9% coupon up to Sept. 27 and a 12% coupon thereafter until paid in full. It will mature Oct. 31, 2010. It is convertible into common shares at $2.25 per share.
The other notes have a 9% coupon. The notes' principal will increase by 20% after 60 days and will increase by another 20% after 120 days unless the company sells equity securities in an equity financing in which it receives an agreed upon minimum amount.
The other notes also will mature on Oct. 31, 2010.
Investors also received warrants for 2,222,222 common shares, which are exercisable at $2.25 until July 9, 2013.
The July 15 note has a 9% coupon. Its principal will increase by 20% after 60 days and will increase by another 20% after 120 days unless the company sells equity securities in an equity financing in which it receives an agreed upon minimum amount.
The July 15 note also will mature on Oct. 31, 2010.
Investors also received warrants for 327,868 common shares, which are exercisable at $1.83 until July 14, 2013.
New York City-based MRU is a specialty finance company that provides federal and private student loans.
| Issuer: | MRU Holdings, Inc.
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| Stock symbol: | Nasdaq: UNCL
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|
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| Merrill Lynch
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| Issue: | Convertible promissory note
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| Amount: | $7.75 million
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| Maturity: | Oct. 31, 2010
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| Coupon: | 9% until Sept. 27, 12% thereafter
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| Price: | Par
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| Conversion price: | $2.25
|
| Warrants: | No
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| Investor: | Merrill Lynch Mortgage Capital Inc.
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| Settlement date: | July 10
|
| Stock price: | $2.16 at close July 10
|
|
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| Other investors (July 10)
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| Issue: | Convertible promissory note
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| Amount: | $5 million (sold for $4 million)
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| Maturity: | Oct. 31, 2010
|
| Coupon: | 9%
|
| Warrants: | For 2,222,222 shares
|
| Warrant expiration: | July 9, 2013
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| Warrant strike price: | $2.25
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| Settlement date: | July 10
|
| Stock price: | $2.16 at close July 10
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| Other investors (July 15)
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| Issue: | Convertible promissory note
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| Amount: | $600,000 (sold for $500,000)
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| Maturity: | Oct. 31, 2010
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| Coupon: | 9%
|
| Warrants: | For 327,868 shares
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| Warrant expiration: | July 14, 2013
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| Warrant strike price: | $1.83
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| Settlement date: | July 15
|
| Stock price: | $1.82 at close July 15
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