By Sheri Kasprzak
New York, Oct. 24 - Ronco Corp. concluded a private placement of $4 million in secured non-convertible term notes and $11 million in secured non-convertible revolving notes with Laurus Master Fund, Ltd.
The term notes bear interest at Prime rate plus 200 basis points with an 8% floor. The notes are due Oct. 18, 2008.
Ronco may prepay the notes at 115% of principal plus interest.
The revolving notes bear interest at Prime rate plus 100 basis points with an 8% floor. The notes are also due Oct. 18, 2008.
The investor received warrants for 1.75 million shares, exercisable at $0.00001 each through Oct. 18, 2036.
Also, Sanders Morris Harris bought $1.5 million of subordinated promissory notes. The 4.77% notes are due June 9, 2009 and are convertible into common shares equal to the average of the highest bid and lowest ask prices for the 20 trading days before conversion.
Ronco, based in Simi Valley, Calif., develops and markets kitchen products through infomercials.
Term notes
| Issuer: | Ronco Corp.
|
| Issue: | Secured non-convertible term note
|
| Amount: | $4 million
|
| Maturity: | Oct. 18, 2008
|
| Coupon: | Prime rate plus 200 bps, 8% floor
|
| Call: | Redeemable at 115% of principal plus interest
|
| Warrants: | For 1.75 million shares
|
| Warrant expiration: | Oct. 18, 2036
|
| Warrant strike price: | $0.00001
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Oct. 18
|
| Stock symbol: | OTCBB: RNCP
|
| Stock price: | $1.35 at close Oct. 18
|
|
|
| Revolving notes
|
| Issuer: | Ronco Corp.
|
| Issue: | Secured non-convertible revolving notes
|
| Amount: | $11 million
|
| Maturity: | Oct. 18, 2008
|
| Coupon: | Prime rate plus 100 bps, 8% floor
|
| Warrants: | See above
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date | Oct. 18
|
| Stock symbol: | OTCBB: RNCP
|
| Stock price: | $1.35 at close Oct. 18
|
|
|
| Promissory notes
|
| Issuer: | Ronco Corp.
|
| Issue: | Subordinated convertible promissory notes
|
| Amount: | $1.5 million
|
| Maturity: | June 9, 2009
|
| Coupon: | 4.77%
|
| Price: | Par
|
| Yield: | 4.77%
|
| Conversion price: | Equal to the average of the highest bid and lowest ask prices for the 20 trading days before conversion
|
| Warrants: | No
|
| Investor: | Sanders Morris Harris
|
| Settlement date: | Oct. 18
|
| Stock symbol: | OTCBB: RNCP
|
| Stock price: | $1.35 at close Oct. 18
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
