By LLuvia Mares
New York, Sept. 28 - Nova Biosource Fuels, Inc. closed a $55 million private placement of 10% convertible senior secured notes due 2012.
The company sold the 10% notes to a group of institutional investors at par.
The notes are convertible at a price of $3.66 each. According to a U.S. Securities and Exchange Commission filing, 15 million shares will be issued if all are converted.
If after the second year, the closing sale price of the company's stock exceeds $6.00 per share for 20 days in any 30 consecutive day period, the company may redeem the notes at par.
In addition, after Sept. 20, 2010 but before Sept. 30, 2011 if conditions are satisfied, the company can redeem the notes at a price of 105. After Sept. 30, 2011 the notes are callable at 102.5.
Jefferies & Co., Inc. was placement agent.
Proceeds will be used to complete an acquisition, repay debt, for capital expenditures and other general corporate purposes.
Nova Biosource is a Houston-based energy company that refines and markets standard biodiesel and related co-products.
Issuer: Nova Biosource Fuels, Inc.
Issue: Convertible senior secured notes
Amount: $55 million
Maturity: 2012
Coupon: 10%
Price: Par
Yield: 10%
Conversion price: $3.66
Conversion ratio: 15 million shares
| Call: | After two years at par subject to $6.00 hurdle, from Sept. 20, 1010 at 105, Sept. 30, 2011 at 102.5
|
| Warrants: | No
|
| Placement agent: | Jefferies & Co., Inc.
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Amex: NBF
|
| Stock price: | $2.70 at close Sept. 27
|
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