By Sheri Kasprzak
New York, July 31 - Raptor Networks Technology, Inc. completed a $5 million private placement of senior convertible notes.
The 9.25% notes were purchased by Castlerigg Master Investments Ltd.; Cedar Hill Partners Onshore, LP; and Cedar Hill Partners Offshore, Ltd. The notes are due in 2008 and are initially convertible into common shares at $0.43948 each.
The investors also received series L and M warrants for 24,460,726 shares. Both series of warrants are exercisable at $0.5054 each for five years.
Montgomery & Co., LLC was the placement agent.
Proceeds from the offering will be used to pay down $1.2 million in debt, to pay for $2 million in operations costs, to pay for $500,000 in capital expenditures and to provide $1 million in working capital for the company.
Based in Santa Ana, Calif., Raptor develops network switching architectures used in video, voice-over-internet protocol and high-speed storage applications.
| Issuer: | Raptor Networks Technology, Inc.
|
| Issue: | Senior convertible notes
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| Amount: | $5 million
|
| Maturity: | 2008
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| Coupon: | 9.25%
|
| Price: | Par
|
| Yield: | 9.25%
|
| Conversion price: | $0.43948
|
| Warrants: | Series L and M for 24,460,726 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.5054
|
| Placement agent: | Montgomery & Co., LLC
|
| Investors: | Castlerigg Master Investments Ltd.; Cedar Hill Partners Onshore, LP; and Cedar Hill Partners Offshore, Ltd.
|
| Settlement date: | July 31
|
| Stock symbol: | OTCBB: RPTN
|
| Stock price: | $0.44 at close July 28
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