By Sheri Kasprzak
New York, May 25 - Nestor, Inc. wrapped a $28.55 million private placement of senior secured convertible notes with institutional and accredited investors.
The 7% notes mature in 2011 and are convertible into common shares at $3.60 each.
The investors received warrants for 1,982,639 shares, exercisable at $4.35 each through May 25, 2011.
Cowen & Co. was the placement agent.
The proceeds will be used to repurchase $2.35 million in 5% convertible notes for $2.42 million including interest and the repurchase premium. The rest will be used for working capital and general corporate purposes.
Separately, holders of $2.85 million in outstanding 5% convertible notes have agreed to extend the maturity to May 2009 from Oct. 31, 2007.
Nestor is a Providence, R.I.-based software company.
| Issuer: | Nestor, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $28.55 million
|
| Maturity: | 2011
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $3.60
|
| Warrants: | For 1,982,639 shares
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| Warrant expiration: | May 25, 2011
|
| Warrant strike price: | $4.35
|
| Placement agent: | Cowen & Co.
|
| Settlement date: | May 25
|
| Stock symbol: | Nasdaq: NEST
|
| Stock price: | $3.43 at close May 25
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