Funds used for capacity expansion, debt repayment, corporate purposes
By Devika Patel
Knoxville, Tenn., May 31 - Yongye International, Inc. completed a $50 million private placement of series A convertible preferred stock with MSPEA Agriculture Holding Ltd. on May 29, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 5,681,818 preferreds at $8.80 apiece. The preferreds are convertible into common stock at $8.80 per share. The price per preferred and the conversion price are a 134.67% premium to the May 27 closing share price of $3.75.
Holders of the preferreds will receive paid-in-kind dividends at an annual rate of between 3% and 7%. The preferreds will automatically convert into common stock in five years.
Proceeds will be used for capacity expansion, commercial bank debt repayment, working capital and general corporate purposes.
Based in Beijing, Yongye sells fulvic acid based liquid and powder nutrient compounds for plant and animal feed used in the agriculture industry.
| Issuer: | Yongye International, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $50 million
|
| Shares: | 5,681,818
|
| Price: | $8.80
|
| Conversion price: | $8.80
|
| Dividends: | Between 3% and 7%
|
| Call: | After five years
|
| Warrants: | No
|
| Investor: | MSPEA Agriculture Holding Ltd.
|
| Settlement date: | May 29
|
| Stock symbol: | Nasdaq: YONG
|
| Stock price: | $3.75 at close May 27
|
| Market capitalization: | $270.05 million
|
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