By Devika Patel
Knoxville, Tenn., Aug. 6 - Rick's Cabaret International, Inc. said it raised $7.2 million in a private placement of 10% convertible debentures.
The three-year debentures are convertible into common shares at $8.75 per share.
The debentures are redeemable by the company after six months if the closing price of Rick's stock is at least $11.50 for 20 consecutive trading days.
In addition, the investors received three-year warrants, which are exercisable at $8.75.
Rick's is a Houston-based operator of adult nightclubs.
| Issuer: | Rick's Cabaret International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $7.2 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $8.75
|
| Warrants: | Yes
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $8.75
|
| Settlement date: | Aug. 6
|
| Stock symbol: | Nasdaq: RICK
|
| Stock price: | $8.00 at close Aug. 6
|
| Market capitalization: | $73.7 million
|
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