By Rebecca Melvin
New York, Sept. 23 – Digital Turbine Inc. priced $16 million of four-year convertible senior notes to yield 8.75% with an initial conversion premium of 10%, according to a company news release on Friday.
The initial conversion price of the notes is $1.364, or 10% above the company’s closing share price of $1.24 on Thursday.
Each purchaser of the Rule 144A notes will receive warrants to purchase 256.60 shares of the company’s common stock for each $1,000 in notes purchased, or up to 4.2 million warrants in total.
The warrants will be exercisable at an initial exercise price of $1.364 per share and will expire at the bond’s maturity Sept. 23, 2020.
Proceeds will be used to repay about $11 million of secured debt and for general corporate purposes.
Austin, Texas-based Digital Turbine makes mobile device management and app management products.
| Issuer: | Digital Turbine Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $16 million
|
| Maturity: | Sept. 23, 2020
|
| Coupon: | 8.75%
|
| Price: | Par
|
| Yield: | 8.75%
|
| Conversion premium: | 10%
|
| Conversion price: | $1.364
|
| Conversion ratio: | 733.14 shares
|
| Warrants: | 256.6 warrants per note
|
| Warrant expiration: | Sept. 23, 2020
|
| Warrant strike price: | $1.364
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 28
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: APPS
|
| Stock reference price: | $1.24 as of close Sept. 22
|
| Market capitalization: | $82.63 million
|
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