Ener1 Announces Agreement To Restructure Senior Notes
NEW YORK, Sept. 12, 2011 /PRNewswire/ -- Ener1, Inc. (NASDAQ: HEV), a leading manufacturer of lithium-ion energy storage solutions for utility grid, transportation and industrial applications, today announced that it has entered into an agreement to restructure its 8.25% Senior Amortizing Notes (the "Notes") with Goldman Sachs Asset Management, L.P. and other holders of the Notes. Ener1 also announced that its primary shareholder, BzinFin S.A., has extended the maturity of its $15-million line of credit from November 2011 to July 2013.
Under the terms of the Note restructuring agreement, the outstanding principal amount of the Notes, totaling $58.5 million, will be divided into two tranches of $29.25 million each, and will be convertible at the option of the investor into shares of Ener1's common stock, as follows:
- The conversion price for the Tranche A Notes will be fixed at approximately $0.66, or 175% of the 5-day volume-weighted average price (VWAP) of Ener1's common stock, for the period ending August 30, 2011.
- The conversion price for the Tranche B Notes will be fixed at $2.00, subject to a downward adjustment if such Notes are not redeemed by January 31, 2012 to the lower of the conversion price for the Tranche A Notes or the 5-day VWAP of Ener1's common stock for the period ending January 31, 2012.
Additional terms of the restructuring include:
- The amortization payment due on October 1, 2011 will be made in 50% cash and 50% stock.
- The requirement to maintain a minimum cash balance has been reduced from the $12 million to the lower of $6 million or 15% of the principal amount of Notes outstanding.
- Note holders will receive an additional 1.4 million in warrants to purchase Ener1 stock at a strike price of $0.3752 per share. The existing warrants held by the note holders will also be reset to this strike price.
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