By Sheri Kasprzak
New York, Aug. 8 - Rita Medical Systems, Inc. said it has received a definitive agreement for a $9.7 million convertible note offering.
The three-year notes will be sold to the company's largest institutional investors.
The subordinated notes are convertible into common shares at $4.03 each and bear interest at 6.5% annually.
The conversion price is a 17% premium to the 30-day average closing price ended Aug. 5.
The proceeds will be used to prepay $9.7 million of outstanding debt within 21 days. That debt is held by Medtronic Inc. and ComVest Ventures Partners LP.
Fremont, Calif.-based Rita Medical Systems develops cancer treatments including radiofrequency ablation systems.
| Issuer: | Rita Medical Systems, Inc.
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| Issue: | Convertible notes
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| Amount: | $9.7 million
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| Maturity: | Three years
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| Coupon: | 6.5%
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| Price: | Par
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| Yield: | 6.5%
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| Conversion price: | $4.03
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| Warrants: | No
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| Settlement date: | Aug. 8
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| Stock price: | $3.50 at close Aug. 5
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