By Kenneth Lim
Boston, May 17 - Velocity Asset Management Inc. priced an upsized $12 million of convertible perpetual preferred shares at a dividend of 10% and an initial conversion premium of 31.579% against its Tuesday closing stock price.
The preferreds were offered at $10 apiece, and may be converted into Velocity common stock at $2.50 per common share. Velocity stock closed at $1.90 on Tuesday. The deal was originally for 10 million preferred shares, or $10 million, but the amount was increased by 2 million preferred shares.
Anderson and Strudwick was the bookrunner of the registered deal, which priced Monday.
The preferreds are non-callable for the first three years. There are no puts.
The preferreds have a contingent conversion threshold at 135% of the conversion price.
Velocity is a Ramsey, N.J.-based trader of distressed assets. It is using the proceeds of the offering to buy portfolios of unsecured consumer receivables, repay outstanding convertible debt and for general purposes.
The preferreds are listed on the American Stock Exchange under the symbol JVI.PR.
| Issuer: | Velocity Asset Management Inc.
|
| Issue: | Convertible perpetual preferred shares
|
| Bookrunner: | Anderson and Strudwick
|
| Amount: | $12 million
|
| Greenshoe: | $1.8 million
|
| Maturity: | Perpetual
|
| Dividend: | 10%
|
| Price: | $10
|
| Conversion premium: | 31.579%
|
| Conversion price: | $2.50
|
| Conversion ratio: | 4
|
| Contingent conversion: | 135%
|
| Call protection: | Non-callable 3 years
|
| Puts: | None
|
| Pricing date: | May 15
|
| Distribution: | Registered
|
| Symbol: | AMEX: JVI.PR
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