MusclePharm completes retirement of all outstanding convertibles

Company uses cash flow and mezzanine financing for transactions

By Tali David

Minneapolis, March 29 - MusclePharm Corp. retired all of its outstanding convertible notes placed to various financing companies, the company announced in a press release.

In January, the company instituted a convertible debt retirement program under which it planned to retire all of its outstanding convertible notes.

Under the program, the company used cash flow from operations, as well as mezzanine financing, to retire the notes.

MusclePharm said it specifically retired $5.5 million of derivative financing instruments with $3 million cash and 55 million shares of common stock.

"Our goal is to become a fully sustainable free cash flow business by the end of the 2012 first quarter," chief executive officer Brad Pyatt said in the release.

"Retiring the convertible debt has helped reduce uncertainty in our equity structure and represents a major step in our plan to re-capitalize MusclePharm and strengthen its balance sheet."

The Denver-based company develops and manufactures a line of nutritional supplements.

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