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BLUE RHINO COMPLETES $10 MILLION EQUITY OFFERING
WINSTON-SALEM, N.C., Sept. 7 /PRNewswire/ -- Blue Rhino Corporation (Nasdaq:
RINO), announced that it has completed the sale of approximately $10.3 million
in shares of its Series A Convertible Preferred Stock to institutional investors
and certain individual investors at a price of $6.00 per share. Proceeds from
the financing will be used to pay down existing debt and for acquisitions and
general working capital.
The Series A Convertible Preferred Stock has a liquidation preference and
accrues a 5 percent dividend through the third anniversary of the closing, a 12
percent dividend from the third anniversary through the fourth anniversary and a
15 percent dividend thereafter, if not converted into common stock. It is
convertible into common stock at any time after the first anniversary of the
closing at the option of the holder and, if the market price of the common stock
exceeds a prescribed threshold, at any time after the second anniversary of the
closing at the option of the company. Each share of Series A Convertible
Preferred Stock shall initially be convertible into one share of common stock
and under certain circumstances, each share of Series A Convertible Preferred
Stock may be convertible into up to 1.33 shares of common stock.
The shares of Series A Convertible Preferred Stock issued and sold have not been
registered under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of that Act.
SOURCE Blue Rhino Corporation
CONTACT: Mark Castaneda, Chief Financial Officer of Blue Rhino
