By Sheri Kasprzak
New York, Sept. 1 - Norwood Abbey Ltd. said it has entered into agreements with investors in the United States for a $10 million convertible note offering.
The notes will be issued in two tranches of $5 million each with the notes issued in the first tranche bearing interest at 3.5% annually and the notes issued in the second tranche bearing interest at 4.5% annually.
The notes from the first tranche mature in two years and the notes from the second in three years. The conversion price for both is A$0.42.
Indus Capital Partners subscribed for $7 million of the offering, and Tiedemann Global Emerging Markets subscribed for the remaining $3 million.
The offering comes with attached options for 8,335,000 shares, exercisable at A$0.65 each for four years.
The funds from the deal will be used to meet obligations associated with Norwood's CIBA Vision EyeCare purchase agreement. The rest will be used for working capital.
Based in Victoria, Australia, Norwood Abbey develops products used in laser eye surgery and other optical procedures.
First tranche
| Issuer: | Norwood Abbey Ltd.
|
| Issue: | Convertible notes (first tranche)
|
| Amount: | $5 million
|
| Maturity: | Two years
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion price: | A$0.42
|
| Options: | For 8,335,000 shares
|
| Options expiration: | Four years
|
| Options price: | A$0.65
|
| Investors: | Indus Capital Partners and Tiedemann Global Emerging Markets
|
| Settlement date: | Sept. 1
|
| Stock price: | A$0.395 at close Sept. 1
|
|
|
| Second tranche
|
| Issuer: | Norwood Abbey Ltd.
|
| Issue: | Convertible notes (second tranche)
|
| Amount: | $5 million
|
| Maturity: | Three years
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion price: | A$0.42
|
| Options: | See above
|
| Investors: | Indus Capital Partners and Tiedemann Global Emerging Markets
|
| Settlement date: | Sept. 1
|
| Stock price: | A$0.395 at close Sept. 1
|
|
|
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