Bakers announces private placement of subordinated convertible debentures
20 Jun '07
3 min read
Bakers Footwear Group Inc announced that on June 13, 2007 it reached an agreement with seven investors for the private placement of $4.0 million in aggregate principal amount of subordinated convertible debentures due June 30, 2012.
The Company expects to receive net proceeds of approximately $3.5 million. The debentures will bear interest of 9.5% per annum, payable semi-annually and have a term of five-years.
The debentures will be convertible into shares of common stock, subject to the adjustments and conditions in the debentures. Bakers expects this private placement will close within two weeks, subject to customary closing conditions.
The debentures will be convertible into shares of the Company's common stock at any time following closing. Based on the initial conversion price of $9.00 per share, the debentures would be convertible into 444,444 shares of common stock.
The conversion price is subject to anti-dilution and other adjustments, including a weighted average conversion price adjustment for certain future issuances or deemed issuances of common stock at a lower price, subject to limitations as required under rules of the Nasdaq Stock Market. The debentures are callable at $16.00 per share, subject to the adjustments and conditions in the debentures.
“We are pleased to announce this debt placement, which enables us to reduce the balance on our senior revolving credit facility, increase the availability of funds under that facility, provide increased working capital, and increase our financial flexibility to continue to execute our growth plans,” Mr. Peter Edison stated.
marketing@alchempro.com
