Mace Security to Replace Convertible Debt with Less Costly Stand-by Financing
December 30 2014 - 10:24AM
Business Wire
Repurchase Retires Potential Issuance of
7.3MM Mace Shares
Mace Security International, Inc. is pleased to announce that it
and Merlin Partners, the holder of its 6% Convertible Debenture
(due 3/31/16 and currently convertible at $0.192 per share), have
agreed on a repurchase of the debenture. This purchase price is at
a significant discount to the Debenture’s current conversion value,
while at a premium to the debt’s face value. The elimination of the
debenture will result in Mace® saving interest costs over the next
15 months. The repurchase also eliminates the potential issuance of
7.3 million Mace shares at an effective cost of $0.315 per share, a
substantial discount to Mace’s current market price.
To retire the debt, Mace will utilize a portion of its current
excess cash. However, in order to insure that Mace® still has
adequate capital and financial flexibility to respond to new
product and potential acquisition opportunities that may arise, the
Company has obtained commitments from a group of private investors,
including some members of Mace’s Board of Directors. These
commitments are for standby financing by way of a put arrangement
on approximately $2mil of convertible notes on terms more favorable
than the current debenture. This arrangement gives Mace® the right
to financing if and when Mace’s Board deems it advantageous for the
company to borrow under terms of the new notes, which are subject
to finalization in January 2015. The put will have a term of two
years with Mace® paying a commitment fee of 2.5% annually, enabling
cost savings until Mace® exercises the put.
About Mace Security
International, Inc.
(OTCPINK: MACE) Mace® Brand
Means Security
Mace Security International, Inc., located in Cleveland, Ohio,
is a diversified manufacturer and provider of personal defense and
security products to consumer and business market segments under
the world renowned Mace® Brand.
Mace® Brand directly distributes and supports its branded
products and services through strategically targeted customer
channels that include mass market retailers, wholesale
distributors, independent dealers, e-commerce marketers, and
installation service providers.
- Personal Defense
Products: Mace® Brand is the original trusted brand of
pepper spray products for self-defense against attacks by people
and animals. Mace® Brand has over 40 years experience developing
aerosol defense spray dispensing technologies for both the consumer
and law enforcement markets around the world.
- Personal & Home Protection
Products: Mace® Brand produces portable safety solutions
for every personal and home protection need. We design and
manufacture products, which provide peace of mind for our
consumers.
- Electronic Security &
Surveillance Products: Mace® Brand has an entire line of
high quality security cameras, digital video recorders, observation
monitors and installation accessories for CCTV and IP network-based
video surveillance, as well as wireless alarm security systems for
local and remote monitoring. We design and manufacture surveillance
equipment for every need, with both analog to high definition
solutions.
- Personal Security & Safety
Wearables: Mace Wear™ is a family of products that
features innovative wearable devices related to safety, security
and overall personal well-being and is supported by strategic
partnerships between Mace Security International, Inc., and
innovative technology companies.
- Security Monitoring
Services: Mace® Brand partners with Security Partners
which owns three UL/ETL/CSAA Five Star listed central monitoring
stations throughout the USA providing full-service security &
life-safety alarm monitoring to the wholesale security trade.
Mace Security International, Inc.John J. McCann, President and
Chief Executive Officer, 440-424-5322Email: john@mace.com
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