Inseego Closes $48 Million Refinancing Transaction
August 24 2017 - 7:03AM
Business Wire
Inseego Corp. (Nasdaq: INSG), a leading global provider of
software-as-a-service ("SaaS") and mobile broadband solutions for
the Internet of Things (“IoT”), entered into a Credit
Agreement with certain funds managed by Highbridge Capital
Management, LLC on August 23, 2017. Pursuant to the credit
agreement, the lenders provided the Company with a new term loan
facility in the principal amount of $48.0 million (the
“Loan”) with a maturity date of August 23, 2020. The Loan will
bear interest at a rate per annum equal to LIBOR, but in no event
less than 1.00%, plus 7.625%. A portion of the proceeds from the
Loan was used to repay all amounts outstanding under the Company’s
previous Senior Credit Agreement due May 8, 2018.
“With the announcement of Inseego’s restructuring plan in June
2017 and the solid progress in our cost reduction efforts to date,
we are in a great position to refinance our current short-term
credit facility at better overall terms and to materially extend
the maturity date. The new 3-year term loan has a significantly
lower interest rate and provides $14.5 million of incremental
liquidity to support our overall business objectives. The new
credit facility provides Inseego the runway and flexibility to
pursue our stated objectives of cost reductions, increased gross
margins and profitable growth in the areas of the business with the
highest ROI,” said Dan Mondor, President and Chief Executive
Officer.
As part of the transaction, and included in the $48.0 million
term loan, the Company exchanged approximately $14.9 million of the
existing Convertible Notes due 2022 into approximately $11.9
million of the new term loan facility and 2.0 million shares of the
Company's common stock.
Jonathan Segal, managing director of Highbridge Capital
Management, LLC, said, “We are supportive of the management team’s
strategy to right-size the cost side of the business, accelerate
the Company's growth and increase free cash flow generation.
Following the solid progress to date both in cost savings and
customer wins, we believe this access to additional capital will
provide Inseego the ability to significantly improve its
profitability.”
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is a leading global provider
of MiFi®-branded intelligent wireless solutions for the worldwide
mobile communications market and software-as-a-service (SaaS) and
solutions for the Internet of Things (IoT). The Company
sells its telematics solutions under the Ctrack brand, including
its fleet management, asset tracking and monitoring, stolen vehicle
recovery, and usage-based insurance platforms. Inseego
Corp. also sells business connectivity solutions and device
management services through Inseego North America
(formerly Feeney Wireless). The Company is headquartered
in San Diego, California. www.inseego.com Twitter
@inseego
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In this context,
forward-looking statements often address expected future business
and financial performance and often contain words such as "may,"
"estimate," "anticipate," "believe," "expect," "intend," "plan,"
"project," "will" and similar words and phrases indicating future
results. The information in this news release related to the time
period needed to pursue the Company’s stated objectives, as well as
other statements that are not purely statements of historical fact,
are forward-looking in nature. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of the management of the Company and are subject to
significant risks and uncertainty. Investors are cautioned not to
place undue reliance on any such forward-looking statements. All
such forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update or revise
these statements, whether as a result of new information, future
events or otherwise, except as may be required by law. These
forward-looking statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements. For a
further discussion of risks and uncertainties that could cause
actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of Inseego Corp. in general, see the risk
disclosures in our Annual Report on Form 10-K for the year
ended December 31, 2016, and in other subsequent filings made
with the SEC by Inseego Corp. (available
at www.sec.gov).
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version on businesswire.com: http://www.businesswire.com/news/home/20170824005315/en/
Inseego Corp.Stephen SmithExecutive Vice President &
CFO(858) 247-2149Stephen.smith@inseego.com
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