Five-year note, 933,333 shares sold to Mill Road to fund acquisitions
By Devika Patel
Knoxville, Tenn., June 28 - National Technical Systems, Inc. raised $14 million in a private placement of a five-year subordinated note and common shares with Mill Road Capital, LP on June 27, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The investor bought 933,333 shares at $7.50 apiece, which is a 9.81% premium to the June 24 closing share price of $6.83 and also an approximately 15% premium over the volume-weighted average price of $6.54 for the 30-day trading period ended June 27.
The 15% note matures in five years and has an original principal of $7 million. It may be prepaid after June 27, 2013.
Investors also received warrants for 300,000 shares, which are exercisable at $0.75 for seven years.
B. Riley & Co. was the company's financial advisor.
Proceeds will be used for acquisitions.
The provider of engineering and compliance testing services is based in Calabasas, Calif.
| Issuer: | National Technical Systems, Inc.
|
| Issue: | Subordinated note, common shares
|
| Amount: | $14 million
|
| Warrants: | For 300,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.75
|
| Investor: | Mill Road Capital, LP
|
| Settlement date: | June 27
|
| Stock symbol: | Nasdaq: NTSC
|
| Stock price: | $6.65 at close June 27
|
| Market capitalization: | $69.1 million
|
|
|
| Note
|
| Amount: | $7 million
|
| Maturity: | Five years
|
| Coupon: | 15%
|
| Call: | After June 27, 2013
|
|
|
| Shares
|
| Amount: | $7 million
|
| Shares: | 933,333
|
| Price: | $7.50
|
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