By Devika Patel
Knoxville, Tenn., April 23 - TRM Corp. raised $11 million in a private placement of secured loan notes on April 18, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The notes are secured by a first lien on all of the company's and its subsidiaries' assets. They have a 13% coupon and mature on April 18, 2011.
The notes are subject to mandatory prepayment if the company issues other debt or equity. In addition, the company may prepay the notes at any time, with a prepayment premium of 102% until April 18, 2009 and 101% after that date.
LC Capital Master Fund, Ltd. was the investor and also received warrants for 12.5 million shares, exercisable initially at $0.28 until April 18, 2015.
Proceeds will be used to repay debt.
TRM is a Portland, Ore.-based provider of ATM and photocopying services.
| Issuer: | TRM Corp.
|
| Issue: | Secured loan notes
|
| Amount: | $11 million
|
| Maturity: | April 18, 2011
|
| Coupon: | 13%
|
| Warrants: | For 12.5 million shares
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| Warrant expiration: | April 18, 2015
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| Warrant strike price: | $0.28
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| Investor: | LC Capital Master Fund, Ltd.
|
| Settlement date: | April 18
|
| Stock symbol: | Nasdaq: TRMM
|
| Stock price: | $0.50 at close April 18
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