This excerpt taken from the SATC 8-K filed Aug 30, 2007.
Item 7.01 Regulation FD Disclosure
As previously announced, on July 19, 2006, SatCon Technology Corporation (the Company) issued $12,000,000 aggregate principal amount of senior secured convertible notes (the Notes). 75% of the original outstanding principal amount under the Notes is to be repaid in 18 equal monthly installments ($500,000 per month) beginning on February 28, 2007. Principal payments may be made in cash or, at the Companys option if certain equity conditions are satisfied, in shares of the Companys common stock. If principal is paid in shares of common stock, the price per share will be the lesser of (i) the conversion price of the Notes ($1.65) or (ii) a 10% discount to the volume weighted average price for the 20 trading days preceding the payment date.
In addition, the Notes bear interest at the higher of (i) 7.0% per annum or (ii) the six-month LIBOR plus 3.5%. Interest is payable quarterly, and may be made in cash or, at the Companys option if certain equity conditions are satisfied, in shares of the Companys common stock. If interest is paid in shares of common stock, the price per share will be at a 10% discount to the volume weighted average price for the 20 trading days preceding the payment date.
On July 10, 2007, the Company determined that, with respect to the eighth principal payment on the Notes, which is due on October 1, 2007, the Company intends to pay the principal payment ($472,916.67) in shares of common stock. Under the terms of the Notes, an estimate of the number of shares owed as principal (based on previous trading prices) must be delivered by August 31, 2007 and trued-up on October 1, 2007. Accordingly, an aggregate of 461,189 shares (representing the current estimate) will be delivered to the holders of the Notes by August 31, 2007.
These shares will be issued in a transaction exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 3(a)(9) thereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.