By Sheri Kasprzak
Atlanta, May 19 - Riviera Tool Co. has revealed the details of its previously announced $13.2 million private placement.
The offering included a $10 million revolving line of credit and a $3.2 million term loan sold to Laurus Master Fund Ltd.
The revolving line of credit accrues interest at Prime rate plus 125 basis points with a 6.5% floor, is convertible into common shares at $1.66 each and matures May 17, 2008.
The term loan accrues interest at Prime rate plus 400 basis points with a 6.5% floor, is convertible into common shares at $1.66 each and matures May 17, 2008.
Along with the term loan and the line of credit, Laurus has agreed to loan Riviera Tool $6,031,000 in a revolving facility with an over-advance of $2.3 million. In connection with that revolving facility, Laurus has the option to buy 650,000 shares at $0.01 each.
Based in Grand Rapids, Mich., Riviera manufactures large-scale metal stamping die systems used to produce sheet metal parts and assemblies for the automotive industry. The proceeds will be used to repay $3 million in subordinated debt to Comerica Bank and The HillStreet Fund II LP. The remainder will be used for working capital.
Revolver
| Issuer: | Riviera Tool Co.
|
| Issue: | Revolving line of credit
|
| Amount: | $10 million
|
| Maturity: | May 17, 2008
|
| Coupon: | Prime rate plus 125 basis points, 6.5% floor
|
| Conversion price: | $1.66
|
| Warrants: | No
|
| Investor: | Laurus Master Fund Ltd.
|
| Settlement date: | May 17
|
| Stock price: | $1.09 at close May 17
|
|
|
| Term loan
|
| Issuer: | Riviera Tool Co.
|
| Issue: | Term loan
|
| Amount: | $3.2 million
|
| Maturity: | May 17, 2008
|
| Coupon: | Prime rate plus 400 basis points, 6.5% floor
|
| Conversion price: | $1.66
|
| Warrants: | No
|
| Investor: | Laurus Master Fund Ltd.
|
| Settlement date: | May 17
|
| Stock price: | $1.09 at close May 17
|
|
|
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