Body Central finishes refinancing with private placement

Body Central Corp. (Nasdaq:BODY) has announced that it has completed the previously

announced review of financing, transactional and strategic alternatives with the closing of a private placement of 18 million dollars in principal amount of its 7.5 percent subordinated secured convertible notes.

Interest on the notes will accrue at 7.5 percent per annum and each quarterly interest payment will be paid in kind by increasing the principal amount due under the notes unless the fashion retailer exercises its option to pay cash interest at a rate of 6.75 percent per annum, further explained the company in a note.

The notes are convertible into shares of the Company's common stock at any time at the option of the holder thereof at a conversion price of 0.35 dollars, subject to certain adjustments. All amounts will be due and payable in cash on the third anniversary of the issue date, unless earlier converted.

Additionally, Body Central has issued new series of its preferred stock, with nominal value, to the holders of the notes granting the power to vote the shares of common stock underlying the notes as if the notes were converted in full. The terms of the preferred stock will grant three of the investors the ability to each elect one director to the company's board of directors.

Houlihan Lokey Capital Inc. acted as the financial adviser to the Company in connection with the private placement transaction.