By Sheri Kasprzak
New York, June 2 - Nephros, Inc. settled a $5 million private placement of 6% secured convertible notes.
Southpaw Credit Opportunity Master Fund LP; 3V Capital Master Fund Ltd.; and Distressed/High Yield Trading Opportunities, Ltd. purchased the notes due 2012.
The notes are convertible into common shares at $2.10 each.
Nephros may prepay the notes at a premium and, if the notes are prepaid before June 1, 2008, Nephros must issue warrants equal to three shares for every $20 in principal prepaid. The warrants are exercisable at a penny each.
The proceeds will be used for product development, marketing and working capital.
New York-based Nephros develops filtration products for patients with end-stage renal disease.
| Issuer: | Nephros, Inc.
|
| Issue: | Secured convertible notes
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| Amount: | $5 million
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| Maturity: | 2012
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| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
|
| Conversion price: | $2.10
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| Call: | May be prepaid at a premium to face value plus interest
|
| Warrants: | For three shares per $20 in principal prepaid, if notes are prepaid before June 1, 2008
|
| Warrant strike price: | $0.01
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| Investors: | Southpaw Credit Opportunity Master Fund LP; 3V Capital Master Fund Ltd.; and Distressed/High Yield Trading Opportunities, Ltd.
|
| Settlement date: | June 1
|
| Stock symbol: | Amex: NEP
|
| Stock price: | $1.47 at close June 1
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