By Laura Lutz
Des Moines, July 16 - NovaStar Financial, Inc. settled a $52.5 million private placement of convertible preferred stock.
The company sold 2.1 million series D-1 9% preferred shares to affiliates of MassMutual Capital Partners LLC and funds managed by Jefferies Capital Partners IV LLC for $25.00 per share.
The preferreds are convertible into 7.5 million common shares at $7.00 each.
The investors also have agreed to buy up to $101.2 million of any unsubscribed shares from an upcoming shareholder rights offering for a similar series of convertible preferred stock.
The company plans to conduct a four-for-one reverse stock split on July 27. All of the terms of the placement are in pre-split shares.
NovaStar is a finance company based in Kansas City, Mo.
| Issuer: | NovaStar Financial, Inc.
|
| Issue: | Series D-1 preferred shares
|
| Amount: | $52.5 million
|
| Shares: | 2.1 million
|
| Price: | $25.00
|
| Dividends: | 9%
|
| Conversion ratio: | Into 7.5 million shares
|
| Conversion price: | $7.00
|
| Warrants: | No
|
| Investors: | Affiliates of MassMutual Capital Partners LLC, funds managed by Jefferies Capital Partners IV LLC
|
| Settlement date: | July 16
|
| Stock symbol: | NYSE: NFI
|
| Stock price: | $7.51 at close July 16
|
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