More Details On the New AONE Convertible Notes ($AONE)

From an 8-K filing, we have the actual details of the new convertible note deal:

• the Company has agreed to sell to the Purchasers $50.0 million aggregate principal amount of unsecured, senior convertible notes and warrants to purchase shares of the Company’s common stock equal to 30% of the number of shares underlying the Notes assuming conversion at the initial conversion price
• In the Purchase Agreement, the Company has agreed, among other things, (i) to certain restrictions on its ability to issue any securities until May 11, 2013, subject to certain exceptions, and (ii) not to enter into a variable rate transaction at any time while the Notes are outstanding.
• The Notes bear interest at a rate of 6.00% per year, subject to certain adjustments, and mature in July 2013.
• The initial conversion price of the Notes is 115% of the closing price of the Company’s common stock on May 11, 2012, or $1.18 per share. Pursuant to the promissory note governing the Notes, the Company has the right to make amortization or interest payments and redemption payments in shares of its common stock at a price equal to the lesser of the applicable conversion price and 82% of the Market Price of the Company’s common stock
• The Purchasers will also have the right at any time, and from time to time, after August 15, 2012, to elect to convert up to $30.0 million aggregate principal amount of Notes at a price equal to 85% of the closing price of the Company’s common stock
• The Warrants have a strike price equal to 125% of the closing price of the Company’s common stock on May 11, 2012, or $1.29 per share.

Yikes, that is demanding financing. This is good for the long subs/short common trade.