Financing includes five-year warrants for 2,580,423 common shares
By Devika Patel
Knoxville, Tenn., Sept. 29 – Remark Media, Inc. arranged a $27.5 million term loan on Sept. 24, according to an 8-K filed Tuesday with the Securities and Exchange Commission. MGG Investment Group LP was the agent.
The loan accrues interest at Libor plus 100 basis points and matures on Sept. 24, 2018.
The investors also received warrants for 2,580,423 common shares. The warrants are exercisable at $9.00 for five years. The strike price is a 107.37% premium to the Sept. 26 closing price of $4.34.
The company also said it arranged a $9.3 million letter of credit facility with Bank of America, NA expiring on May 31, 2016. These debt financings were conducted in connection with Remark Media’s acquisition of Vegas.com.
Remark is an online media company based in Las Vegas.
| Issuer: | Remark Media, Inc.
|
| Issue: | Term loan
|
| Amount: | $27.5 million
|
| Maturity: | Sept. 24, 2018
|
| Coupon: | Libor plus 100 bps
|
| Call: | Yes
|
| Warrants: | For 2,580,423 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $9.00
|
| Agent: | MGG Investment Group LP
|
| Settlement date: | Sept. 24
|
| Stock symbol: | Nasdaq: MARK
|
| Stock price: | $4.34 at close Sept. 23
|
| Market capitalization: | $61.91 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
