By Devika Patel
Knoxville, Tenn., Feb. 25 - Verenium Corp. arranged a $54 million private placement of senior convertible notes due April 1, 2012, according to an 8-K filed Monday with the Securities and Exchange Commission and a company press release.
The notes bear interest at 8% and will be convertible into common shares at an initial conversion price of $4.09 per share.
The notes are subject to automatic conversion at the company's option if the closing price of Verenium's stock exceeds $8.18 per share, 200% of the initial conversion price, over a certain period and if certain other conditions are met.
Investors also will receive warrants for 8 million shares, exercisable at $4.44 per share.
Lazard Freres & Co. LLC is the agent.
Proceeds will be used for general corporate and working capital purposes. Settlement is expected Feb. 27.
Based in San Diego, Verenium is a developer of specialty enzymes used in alternative fuel, industrial, health and nutrition processes.
| Issuer: | Verenium Corp.
|
| Issue: | Senior convertible notes, warrants
|
| Amount: | $54 million
|
| Maturity: | April 1, 2012
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $4.09
|
| Warrants: | For 8 million shares
|
| Warrant strike price: | $4.44
|
| Agent: | Lazard Freres & Co. LLC
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Nasdaq: VRNM
|
| Stock price: | $3.52 at close Feb. 22
|
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