Ram Power Corp. closed $50m private placement in March 2013
In late March 2013, Ram Power Corp. successfully closed a $50 million senior debenture private placement for the repayment of all existing corporate credit facilities and associated transaction cost.
Only picked up today, Ram Power Corp. announced on March 27, 2013, that it successfully closed a senior debenture private placement over C$50.9 million (US$50.1 million).
The Company issued a total of 50,855 units (the “Units”) at a price of C$1,000 per Unit for gross proceeds of C$50,855,000. Each Unit consists of a C$1,000 secured debenture of the Company (each a “Debenture”) and 1,000 share purchase warrants (each common share purchase warrant, a “Warrant”). The Debentures are at an interest rate of 8.5% per annum payable semi-annually with a maturity date of March 27, 2018. Each Warrant entitles the holder to acquire one common share of the Company at a price of C$0.30 until March 27, 2018. The Private Placement was marketed by Cormark Securities Inc. on behalf of the Company on a best efforts agency basis.
The net proceeds of the Private Placement, together with approximately C$4 million of the Company’s funds, were used to repay in full the Company’s existing corporate credit facility and associated transaction costs.
Antony Mitchell, Executive Chairman of Ram Power, stated, “The board of directors for the Company continues to seek out and achieve critical milestones to enhance shareholder value. The new debenture issuance enhances long-term cash flow at the parent level while we continue to develop our portfolio of projects in Nicaragua. Additionally, I would like to thank the tremendous amount of support for the Company from both new debenture holders as well as our existing Corporate Credit Facility lenders Sprott Resource Lending Partnership, Exploration Capital Partners 2008 Limited Partnership and Newberry International Holdings Ltd.”