Anvil wraps unit placement; Patriot Bancorp seeks funds; Argyle sells bridge, promissory notes

By Stephanie N. Rotondo

Portland, Ore., Dec. 17 - The looming end of the year has not seemed to deter the private placement market one bit, as the marketplace continued to be active Thursday.

In fact, several of the day's deals were in the double - and in some cases, triple - digits.

Anvil Mining Ltd. settled an over C$105 million private placement of units, the company announced. Trafigura Beheer BV was the investor and is also providing the company with a $100 million loan.

Meanwhile, Patriot National Bancorp Inc. said it was seeking $50 million from a private stock sale. The company hopes the funding will help to maintain regulatory requirements, as well as to fund long-term growth.

Argyle Security Inc. sold convertible bridge and promissory notes in its effort to raise $10.45 million. The company is also looking to launch a rights offering.

Also, Insight Management Corp. said it secured a $10 million credit line. However, the company did not disclose the terms of the agreement.

And, Oilsands Quest Inc. will raise $9 million via a private placement of stock.

Anvil wraps unit placement

Anvil Mining completed a private placement of units, taking in a total of C$106.48 million.

The deal originally priced on Aug. 10. The first tranche of C$34.42 million closed Sept. 17, with the remaining C$72.06 million being raised in this last and final tranche.

Trafigura Beheer BV was the investor. Upon completion of the deal, Trafigura's equity interest in the company was approximately 38.9%.

Anvil sold the units at C$2.20 each and a total of approximately 48.39 million units were issued. The units consisted of one common share and 0.232 warrants. Whole warrants are exercisable at C$2.75 for 30 months.

In addition to the private financing, Trafigura is also providing the company with a $100 million loan. The loan carries an interest rate of Libor plus 400 basis points and is only accessible once the private placement funds have been used in full.

Proceeds will be used to recommence construction on certain projects in the Congo, as well as for working capital.

Anvil's equity (Toronto: AVM) fell 9 cents, or 2.77%, to C$3.16. Market capitalization is C$380 million.

Anvil Mining is a Toronto-based copper and silver production company.

Patriot seeks $50 million

Patriot National Bancorp is looking to raise $50 million via a private placement of equity, according to a regulatory filing.

The company will sell approximately 33.33 million common shares are $1.50 per share.

PNBK Holdings LLC is the investor.

"Our investment objective is to provide capital necessary to maintain regulatory requirements and to position Patriot for long-term sustainable growth, asset diversification and superior performance for shareholders," said Michael Carrazza of PNBK.

"Patriot's geographic footprint includes a collection of some of the wealthiest communities in the country, representing a stable, affluent client base along the Fairfield County coastline, Westchester County and New York City. Patriot provides an attractive platform that will benefit from our capital, operational support and growth objectives," Carrazza said.

"The combination of additional capital, operating expertise and experienced additions to the team will assist Patriot in achieving its future goals," said Angelo De Caro, chairman of PNBK. "Most importantly, greatly enhanced regulatory capital contemplated in the transaction will strengthen our position and allow us to stay focused on serving our customers."

Patriot's stock (Nasdaq: PNBK) dropped 4 cents, or 2.44%, to $1.60. Market capitalization is $7.67 million.

Patriot National Bancorp is a Stamford, Conn.-based bonk holding company for Patriot National Bank.

Argyle sells bridge, promissory notes

Argyle Security pocketed total proceeds of $10.45 million from a private placement of convertible notes, the company said in a regulatory filing.

The deal settled Dec. 14. Mezzanine Management Fund IV A, LP and Mezzanine Management Fund IV Coinvest A, LP - all funds managed by MML Capital Partners - are the investors.

According to the terms of the financing, the company issued $8 million of convertible bridge notes and $2.45 million in convertible subordinated promissory notes. Both notes have a 10% coupon.

Argyle has also agreed to launch a rights offering in connection with the placement. If the offering is successful, the notes will convert to common stock at the same price per share as the offering. If the offering is not completed, the notes convert at $0.4302.

It is expected that the proceeds from the rights offering will be used to refinance the bridge notes.

Proceeds will be used to repay $3 million of the company's senior debt facility, as well as $5 million of the company's subordinated debt, according to a press release issued Dec. 14.

"As a result of this investment, our balance sheet has been strengthened because of the repayment of a significant portion of our indebtedness, including the portion of our subordinated debt with the highest interest rate," said Bob Marbut, chief executive officer, in the release. "In addition, our ongoing financial covenant requirements have been improved through amendments to our loan agreements."

Added Sam Youngblood, president and chief operating officer: "This investment by MML sends a clear message, especially to our customers, that we intend to maintain our position as an industry leader. While recognizing the challenging environment, we are determined to provide the exceptional service and project management expected by our customers."

Argyle's shares (OTCBB: ARGL) ended unchanged at $0.38. Market capitalization is $2.82 million.

Argyle Security is a San Antonio-based security company.

Insight secures credit line

Insight Management, an Orcutt, Calif.-based developer of oil and gas technologies, secured a $10 million line of credit with Auctus Private Equity Fund LLC.

The terms of the deal were not disclosed and the company could not be reached for comment.

Proceeds will be used for working capital and potential acquisitions.

Insight's stock (OTCBB: ISIM) dipped $0.004, or 15.38%, to $0.022. Market capitalization is $13.4 million.

Oilsands plans stock sale

Oilsands Quest orchestrated a $9 million private placement of common shares, the company said in a press release.

The Calgary, Alta.-based company intends to sell 8.57 million shares at $1.05 per share.

Garth Wong, chief financial officer, said that the company was "pleased" with the financing, but noted that investor response has been "muted."

"I think people expect us to take advantage of financing windows when they become available," he said, adding that most calls he had fielded from investors were largely about the company's operations than the financing.

Proceeds will be used for a testing program at Oilsands' Axe Lake prospect, as well as for general corporate purposes. Wong said the program started about a year ago, "and this is just a continuation of that program."

The testing program will help the company determine the extraction process at the reservoir, he said.

Settlement is expected by Dec. 22.

Oilsands' equity (Amex: BQI) slipped a penny, or 0.88%, to $1.12. Market capitalization is $327 million.

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