By Devika Patel
Knoxville, Tenn., June 28 - Rick's Cabaret International, Inc. raised $9.2 million in a private placement of 10% convertible debentures due June 25, 2013, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal settled Friday.
The debentures are convertible into common shares at $10.25 per share.
The debentures are redeemable by the company after six months if the closing price of Rick's stock is at least $13.47 for 20 consecutive trading days.
In addition, the investors received warrants for 179,512 shares, which are each exercisable at $10.25 until June 25, 2013.
Rick's is a Houston-based operator of adult nightclubs.
| Issuer: | Rick's Cabaret International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $9.2 million
|
| Maturity: | June 25, 2013
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $10.25
|
| Warrants: | For 179,512 shares
|
| Warrant expiration: | June 25, 2013
|
| Warrant strike price: | $10.25
|
| Settlement date: | June 25
|
| Stock symbol: | Nasdaq: RICK
|
| Stock price: | $8.73 at close June 25
|
| Market capitalization: | $88.7 million
|
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