Providence Service holders selling up to 765,916 shares of convertible preferreds

Chicago, Sept. 18 – Coliseum Capital Partners, LP, Coliseum Capital Partners II, LP, Coliseum Capital Co-Invest, LP and Blackwell Partners, LLC are selling up to 765,916 shares of 5.5%/8.5% series A convertible preferred stock of Providence Service Corp., according to a 424B3 filing with the Securities and Exchange Commission.

The selling stockholders were given the option to purchase the convertibles as consideration for entering into a standby purchase agreement in connection with the company’s rights offering in 2015.

Providence Service will not receive any of the proceeds from the sale.

As of Aug. 30, there are 799,969 shares outstanding.

The preferred stock is convertible based on a liquidation preference of $100 divided by a conversion price of $39.88. The conversion rate is currently 2.5075 shares of common stock for each share of preferred stock.

Shares can be converted at any time at the option of the holder.

If, at any time following the third anniversary date of the issue of the preferred stock, the volume weighted average price of the common stock equals or exceeds two times the conversion price of the preferred stock for a period of 30 consecutive trading days, the company may elect to automatically convert the preferred stock into convertible stock.

After the tenth anniversary of the original issuance, the company may redeem the outstanding preferred stock at the liquidation preference price then in effect.

Providence Service is a Tucson, Ariz.-based provider of social services.

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