New York, June 30 - Cadiz Inc. said it obtained a $36.375 million five-year zero-coupon secured convertible loan.
Interest is at 5% for the first three years, stepping up to 6% after that, according to an 8-K filing with the Securities and Exchange Commission.
The lenders can convert $10 million of principal and accrued interest into stock at $18.15 per share and $26.375 million of principal and accrued interest into stock at $23.10 per share.
Peloton Partners, LLP arranged the loan with other lenders also participating. Previously Peloton held 9% of Cadiz's stock.
Proceeds were used to repay Cadiz's existing credit facility with ING Capital LLC.
Based in Los Angeles, Cadiz acquires and develops water-related land and agricultural assets.
| Issuer: | Cadiz Inc.
|
| Issue: | Secured convertible loan
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| Amount: | $36.375 million
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| Maturity: | Five years
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| Coupon: | 0% (interest accrues at 5% for first three years, then 6% for remaining two years)
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| Conversion price: | $18.15 for $10 million of principal and accrued interest, $23.10 for $26.375 million of principal and accrued interest
|
| Warrants: | No
|
| Investor: | Peloton Partners, LLP
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| Settlement date: | June 29
|
| Stock symbol: | Nasdaq: CDZI
|
| Stock price: | $16.19 at close June 29
|
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