Wilsons The Leather Experts announces closing of Eq investment
16 Jun '07
2 min read
Wilsons The Leather Experts Inc announced that it completed the closing of its private placement of a newly created series of convertible Preferred Stock and warrants to purchase Wilsons Leather Common Stock.
Wilsons Leather issued 45,000 shares of Preferred Stock to an affiliate of Goldner Hawn Private Equity, Peninsula Investment Partners and Quaker Capital Management Corporation for an aggregate purchase price of $45.0 million. Goldner Hawn led the round with a $35.0 million investment, and Peninsula and Quaker each invested $5.0 million.
The shares of Preferred Stock are currently convertible into an aggregate of 30,000,000 shares of Common Stock based on a conversion price of $1.50 per share. Wilsons Leather also issued warrants that are currently exercisable for an aggregate of 15,000,000 shares of Common Stock at an exercise price of $2.00 per share.
The warrants expire five years from the date of issuance. This transaction will provide the Company with $45.0 million in new equity before offering expenses. Wilsons Leather intends to use the proceeds for general working capital purposes and to pay fees related to the transaction.
The proceeds will also be used to repay the $20.0 million Term B promissory note, thereby increasing availability under the Company's revolving credit facility.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements.
marketing@alchempro.com
