International Food & Beverage has sold $3.5 million worth of bonds and warrants to BT Capital Corp., a subsidiary of the investment banking firm of Bankers Trust New York. The warrants--which are adjustable according to the company's financial performance--initially entitle BT to acquire 15% of International Food's common stock for 50 cents a share.
The Irvine firm, which employs about 15 people, manufactures and markets frozen pizza products sold under the name of Mama Mia HomeStyle Pizza. The company's customers include food service operators, caterers and restaurants.
International Food has obtained a $2-million line of credit, which it will use to purchase equipment for a manufacturing facility. In exchange for the credit line, International Food issued to Equitec Financial Group of Oakland a warrant to purchase 600,000 shares of stock at 50 cents per share.
The company has 26 million shares of common stock outstanding.