By Sheri Kasprzak
Atlanta, Dec. 20 - CNH Holdings Co. said Monday it closed a private placement of senior unsecured convertible promissory notes for $1,171,000.
On Dec. 13, the company sold the promissory notes and warrants for 1,171,000 shares.
The notes bear interest at 8% per year, compounded quarterly on March 31, June 30, Sept. 30 and Dec. 31. The notes mature Dec. 9, 2006.
About $1,029,000 of the principal of the notes was issued in cash and $142,000 of the principal was issued for the cancellation of an equal amount of the company's outstanding obligations.
The notes are convertible into shares at $1.30 each or a 25% discount to the average closing bid price for the five days including and immediately preceding the interest compounding date. There is a $1 floor on the conversion price.
The warrants in the offering allow for an additional share at $1.30 each for five years.
CNH Holdings, based in Dallas, is an investment holding company that invests in intellectual property and technology.
| Issuer: | CNH Holdings Co.
|
| Issue: | Senior unsecured convertible promissory notes
|
| Amount: | $1,171,000
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| Maturity: | Dec. 9, 2006
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
|
| Conversion price: | $1.30
|
| Warrants: | For 1,171,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.30
|
| Settlement date: | Dec. 13
|
| Stock price: | $1.85 at close Dec. 13
|
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