By Abigail W. Adams
Portland, Me., June 1 – Atari SA priced €30 million of three-year convertible notes on Thursday at par with a coupon of 6.5% and an initial conversion premium of 15%, according to a company news release.
Irata LLC, a 27.73% shareholder controlled by Atari chairman and CEO Wade Rosen, subscribed to 97.58% of the public offering, which was marketed via the French Monetary and Financial Code.
Irata’s subscription was covered by a set-off of shareholder loans made by Irata to Atari in the amount of €16.3 million and €12.9 million in cash.
The bonds are non-callable until Aug. 21, 2025 and then subject to a 130% hurdle. They are also subject to a cleanup call if 20% or less are outstanding.
The bonds are putable upon a fundamental change.
They will be listed for trade on Euronext Growth.
Proceeds will be used to set off Irata’s shareholder loan, for the development of 12 new games set to launch within the next 18 months and for potential acquisitions.
The transaction provides Atari with the ability to finance its obligations for the next 12 months with the estimated operating costs €4.5 million.
Prior to the transaction, the company did not have enough funds to operate through June.
Atari is a Paris entertainment and licensing company.
| Issuer: | Atari SA
|
| Amount: | €30 million
|
| Issue: | Senior unsecured convertible bonds
|
| Maturity: | July 31, 2026
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 15%
|
| Conversion price: | €0.15
|
| Call options: | Non-callable until Aug. 21, 2025 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 1
|
| Settlement date: | June 5
|
| Distribution: | French Monetary and Financial Code
|
| Stock symbol: | ALATA: EN Paris
|
| Stock price: | €0.1304 at market close May 23
|
| Market capitalization: | €58.72 million
|
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