Raser Technologies misses April 1 interest payment on 8% convertibles

By Jennifer Chiou

New York, April 4 - Raser Technologies, Inc. has yet to make the $2.2 million semiannual interest payment on its 8% convertible senior notes due 2013 that was slated for April 1, according to an 8-K filing with the Securities and Exchange Commission.

The company, which issued $55 million of the notes on March 26, 2008, said that though it has until May 1 to make the interest payment before an event of default would occur, it is uncertain whether a payment will be made.

Raser said that it has initiated discussions with the holders of more than a majority of the notes to discuss proposals that would modify the repayment terms of the convertibles.

As previously reported, the company announced in October 2010 that it had skipped the $2.2 million payment due Oct. 1, but it planned to either make the payment before the expiration of the grace period or seek a forbearance from the noteholders. Raser ended up making the payment in November.

For that payment, the company used $1.1 million received from Thermo No. 1 plant escrow funds and a $1.15 million loan it received from Evergreen Clean Energy, LLC to make the interest payment on the 8% notes, according to a prior SEC filing.

Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation.

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