The noteholders' exercise converts debt in the aggregate principal amount of $3,850,000 to 1,400,000 common shares.
The September 2004 notes were issued to accredited investors in a private placement, with principal due in full at maturity Sept. 30, 2005. Under the terms of their notes, individual noteholders, at their respective options, were entitled to convert the outstanding principal balances of their respective notes into shares of the company's common stock on or before the date occurring two weeks after the date the Metalic listed its common stock on the American Stock Exchange. Metalico's stock began trading March 15, 2005, fixing the conversion deadline at March 29, 2005.
Carlos E. Aguero, president and CEO of Metalico Inc., says, "The 100 percent conversion of the September 2004 notes is indicative of the confidence that the note holders have in Metalico's future prospects."
Metalico Inc. is a holding company with operations in ferrous and nonferrous scrap metal recycling and in fabrication of lead-based products. It operates five recycling facilities and six lead fabrication plants in six states. Metalico's common stock is traded on the American Stock Exchange under the symbol MEA.
Metalico now has approximately 8,000,000 shares of common stock and 16,510,658 shares of preferred stock outstanding. Its shares of preferred stock convert to shares of common on a one-to-one basis. Assuming all shares of the preferred stock were converted to common, Metalico would have a total of approximately 24,500,000 shares of common stock outstanding.