New York, April 19 - Thomas Equipment Inc. said it sold $25 million of convertible preferred stock in a private placement.
The preferreds convert into stock at a price of $3.00 per share and pay a dividend of 5%.
Investors also received warrants for 25% of the number of shares that would be issued on conversion, exercisable at $3.75 per share.
Halpern Capital Inc. was advisor for the placement.
Thomas, a Milwaukee-based maker of loaders and excavators, will use proceeds to de-leverage its balance sheet, acquire capital machinery and equipment to increase production capacity, and for working capital.
Since April 1, Thomas has won more than $50 million in purchase orders for 2005 shipments, commented Clifford Rhee, president and chief executive officer.
"Understandably, this monumental organic growth has created substantial working capital needs to support it," he added. "The swift completion of this equity offering was vital to support of these new orders and has enabled Thomas to fulfill its strategic initiatives."
| Issuer: | Thomas Equipment Inc.
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| Issue: | Convertible preferred stock
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| Amount: | $25 million
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| Dividend: | 5%
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| Conversion price: | $3.00
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| Warrants: | For 25% of shares that would be issued on conversion
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| Warrant strike price: | $3.75
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| Announcement date: | April 19
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| Advisor: | Halpern Capital Inc.
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| Stock price: | $4.50 (last trade, April 14)
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