United States. Motorcar Parts of America (MPA) has made a promissory note purchase investment with funds affiliated or advised by Los Angeles-based Bison Capital Asset Management LLC and the sale of $32,000,000 in total principal amount in convertible notes maturing in 2029.
Bonds may be converted at any time by the Holder, subject to certain conditions, at a conversion price of $15 per share. The company can also redeem the notes after three years.
"This strategic investment complements management's ongoing goals and objectives, while enhancing the company's working capital to support sustainable shareholder value creation," said Chairman and Chief Executive Officer Selwyn Joffe.
"The company not only values the investment, but also the involvement of Bison's co-founder. We remain diligently focused on achieving our short- and long-term financial goals at an exciting turning point in the company's evolution," said Joffe.
The bonds will bear interest at a rate of 10% per annum, and will be capitalized annually, payable in kind or in cash with the option to pay in arrears, as of April 1, 2024.
Bonds have a set maturity of March 30, 2029, subject to early conversion or redemption in accordance with certain terms and conditions.
Joffe added that Doug Trussler, a partner and co-founder of Bison Capital, has agreed to be a member of the company's board of directors.
"We appreciate Bison's considerable research and analysis of the company and industry during his diligence process, and we appreciate Doug's contributions as a board member," Joffe said.
"Our investment in Motorcar Parts of America recognizes the growing opportunities available to the company by leveraging its industry leadership, global presence and infrastructure. The non-discretionary automotive aftermarket industry is unique and vibrant, and we look forward to participating in and benefiting from the company's short- and long-term success," said Doug Trussler.
