By Devika Patel
Knoxville, Tenn., Sept. 26 - U.S. Starcom Inc. said it has concluded a $3.12 million private placement of an 8% senior subordinated secured note and shares with Sigma Opportunity Fund, LLC.
The financing comprises a $2 million note due in 2011 and a $1.12 million equity investment.
The equity portion of the deal consists of approximately 4.05 million common shares, which were sold with warrants for approximately 1.14 million common shares.
Of the proceeds, $2 million will be held in an interest-bearing escrow account and, upon release, will go primarily toward the expansion of the company's Bell Latino division. Interest earned on the funds in escrow will go directly to the company, effectively reducing the interest rate paid on the note.
Based in Perth Amboy, N.J., U.S. Starcom provides diversified communication, financial and transaction-based services, primarily targeted at the emerging U. S. Latino communities and business markets.
| Issuer: | U.S. Starcom Inc.
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| Issue: | Senior subordinated secured note, common shares
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| Amount: | $3.12 million
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| Warrants: | For approximately 1.14 million shares
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| Investor: | Sigma Opportunity Fund, LLC
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| Settlement date: | Sept. 26
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| Stock symbol: | Pink Sheets: USTA
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| Stock price: | $0.03 at close Sept. 26
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|
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| Note
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| Amount: | $2 million
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| Maturity: | 2011
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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|
|
| Shares
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| Amount: | $1.12 million
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| Shares: | 4.05 million (approximate)
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