AMSC has announced that it has raised approximately $25 million in gross proceeds through the sale of convertible notes and warrants via an agreement with an institutional investor.
The company says the proceeds will be used for working capital and general corporate purposes. Deutsche Bank Securities Inc. acted as placement agent for AMSC, and Latham & Watkins LLP acted as legal counsel to AMSC in connection with the financing.
Under the terms of the transaction, AMSC issued an aggregate of $25 million of 7% senior convertible notes in a first tranche of the placement with a conversion price of $4.85 per share, representing a premium of approximately 20% over AMSC's closing price on April 3, 2012, subject to adjustment. Subject to certain conditions, the notes are scheduled to amortize in monthly installments beginning four months from issuance and ending on Oct. 4, 2014.
In addition, the investor received warrants to purchase approximately 3.1 million additional shares of common stock exercisable at a strike price of $5.45 per share until Oct. 4, 2017, subject to adjustment.
Subject to certain conditions contained in the securities purchase agreement, AMSC has the right to require the investor to purchase up to an additional $15 million aggregate principal amount of convertible notes and additional warrants from AMSC.