Nestor redeems $6 million convertible note, issues $6 million term note

By Sheri Kasprzak

New York, Jan. 4 - Nestor, Inc. said it has redeemed an outstanding $6 million convertible note due 2008 and issued a non-convertible secured term note for the same principal amount.

The company redeemed the note, which is held by Laurus Master Fund, Ltd. The convertible note was due on May 16, 2008 and bore interest at Prime rate plus 400 basis points with a 6% floor. It had been convertible at $5.82 per share.

The convertible note was issued on May 16, 2005.

The new note bears interest at Prime rate plus 200 basis points with a 7% floor and matures on Dec. 28, 2008.

Connected to the new note, Laurus received 203,774 shares of Nestor's stock at a penny each.

Based in Providence, R.I., Nestor manufactures video-based traffic safety products.

On Tuesday, the company's stock closed unchanged at $5.40.

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