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Motorcar Parts of America Announces Strategic Convertible Note Investment
--Co-Founder of Private Equity Firm Joins Board-- LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America Inc. (Nasdaq: MPAA) today announced it has entered
About this update from Motorcar Parts Of America, Inc.
[{"type":"text","content":"\n--Co-Founder of Private Equity Firm Joins Board--\n\n LOS ANGELES--(BUSINESS WIRE)--\nMotorcar Parts of America Inc. (Nasdaq: MPAA) today announced it has entered into a note purchase investment with funds affiliated with or advised by Los Angeles-based Bison Capital Asset Management, LLC, and the sale of $32,000,000 in aggregate principal amount Convertible Notes due in 2029.\n\nThe Notes may be converted at any time by the Holder, subject to certain conditions, at a conversion price of $15.00 per share. The Company is also able to redeem the notes after three years.\n\n“This strategic investment complements management’s ongoing goals and objectives, while enhancing the company’s working capital to support building sustainable shareholder value. The company not only values the investment, but also the participation of Bison’s co-founder. We remain diligently focused on achieving our near- and long-term financial targets at an exciting inflection point in the company’s evolution,” said Selwyn Joffe, chairman, president, and chief executive officer.\n\nThe Notes will bear interest at a rate of 10.0 percent per annum, and compound annually, payable in kind or in cash with the option to pay in arrears, commencing on April 1, 2024.\n\nThe Notes have a stated maturity of March 30, 2029, subject to earlier conversion or redemption in accordance with certain terms and conditions.\n\nAdditional information regarding the terms and conditions of the investment is available in a related Form 8-K filed today with the Securities and Exchange Commission.\n\nJoffe added that Doug Trussler, partner and co-founder of Bison Capital, has agreed to serve as a member of the company’s board of directors. “We appreciate Bison’s considerable company and industry research and analysis during its diligence process, and we welcome Doug’s contributions as a member of the board,” Joffe said.\n\n“Our investment in Motorcar Parts of America recognizes the increasing opportunities available to the company by leveraging its industry leadership, global footprint, and infrastructure. The non-discretionary automotive aftermarket parts industry is unique and vibrant, and we look forward to participating and benefiting from the company’s success in the near and long term,” commented Doug Trussler.\n\nAbout Motorcar Parts of America, Inc.\n\nMotorcar Parts of Ameri...