By Devika Patel
Knoxville, Tenn., April 10 - Rapid Link, Inc. raised $3.3 million in a private placement of notes and warrants on April 3, according to an 8-K filed Thursday with the Securities and Exchange Commission.
Valens Offshore SPV II Corp. was the investor.
The $1.8 million 10% secured term A note, bought by Valens Offshore, matures on March 31, 2011. Interest is payable monthly. Amortizing principal payments of $85,000 per month, plus interest and fees, will begin on Oct. 1, 2009. The note may be prepaid at 110% of the outstanding principal.
Valens Offshore also received a warrant for 5,625,000 common shares, exercisable at $0.01 per share.
Valens Offshore also bought a $1.5 million 10% secured term B note, along with warrants for a number of common shares equal to 25% of the note's principal divided by the then-current stock price. The warrant is exercisable at $0.01 per share.
The term B note also matures on March 31, 2011. Interest is payable monthly. Amortizing principal payments of $85,000 per month, plus interest and fees, will begin on Oct. 1, 2009. The note may be prepaid at 110% of the outstanding principal.
Los Angeles-based Rapid Link is a voice-over-internet protocol provider.
| Issuer: | Rapid Link, Inc.
|
| Issue: | Secured term A note, secured term B note
|
| Amount: | $3.3 million
|
| Maturity: | March 31, 2011
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Investor: | Valens Offshore SPV II Corp.
|
| Settlement date: | April 3
|
| Stock symbol: | OTCBB: RPID
|
| Stock price: | $0.08 at close April 3
|
|
|
| Term A note
|
| Amount: | $1.8 million
|
| Warrants: | For 5,625,000 shares
|
| Warrant strike price: | $0.01
|
|
|
| Term B note
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| Amount: | $1.5 million
|
| Warrants: | For a number of shares equal to 25% of the term B note's principal divided by the then-current stock price
|
| Warrant strike price: | $0.01
|
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