FiberCore Inc. (Quote), a maker and supplier of optical fiber and preform, said it has closed on a private placement of $6 million in 5% Convertible Subordinated Debentures to institutional investors, with the option to increase the total dollar amount up to $9 million.
Under the terms of the transaction, FiberCore received $5 million at closing and will receive an additional $1 million when a registration statement to be filed in connection with the transaction becomes effective.
Each of the parties has an option to place up to an additional $3 million of the Debentures under certain conditions, provided, the aggregate additional placement does not exceed $3 million, FiberCore also said.
Proceeds from the placement will be used to support FiberCore's capital expenditure program, including the recently announced capacity expansion and productivity initiatives in Germany, as well as for other corporate purposes.
Merrill Lynch, the company's investment banker, acted as placement agent.
FiberCore, Inc. develops, manufactures and markets single-mode and multimode optical fiber preforms and optical fiber for the telecommunications and data communications markets. In addition to its standard multimode and single-mode fiber, FiberCore also offers various grades of fiber for use in laser-based systems up to 10 Gbps, to help guarantee high bandwidths and to suit the needs of Feeder Loop (also known as Metropolitan Area Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk applications. Manufacturing facilities are presently located in Jena, Germany and Campinas, Brazil.
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