By Sheri Kasprzak
New York, Nov. 28 - MTM Technologies, Inc. said it has closed a private placement for $25 million in a subordinated term loan and $10 million in series A-5 preferred stock.
The 4.52% loan was funded by Columbia Partners LLC, and the preferreds were funded by Pequot Ventures and Constellation Ventures.
The loan matures in four years.
The investors will receive warrants for 700,000 shares, exercisable at $4.06 each.
The full terms of the preferreds could not be determined by press time Monday.
Proceeds will be used to complete the company's acquisition of NEXL, Inc.
Based in Stamford, Conn., MTM provides internet technology networking and communications technology, including voice-over-internet protocol.
Issuer: | MTM Technologies, Inc.
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Issue: | Subordinated term loan
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Amount: | $25 million
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Maturity: | Four years
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Coupon: | 4.52%
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Price: | Par
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Yield: | 4.52%
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Warrants: | For 700,000 shares
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Warrant strike price: | $4.06
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Investor: | Columbia Partners LLC
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Settlement date: | Nov. 28
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Stock price: | $3.78 at close Nov. 28
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