By Laura Lutz
Des Moines, Aug. 23 - Vitesse Semiconductor Corp. arranged a purchase agreement for up to $45 million of senior unsecured convertible notes with Whitebox VSC, Ltd.
The purchase agreement was part of a financing deal under which Whitebox agreed to lend Vitesse $30 million. The loan will be for four years, and Whitebox may lend up to an additional $15 million under the deal.
Whitebox may buy the convertibles at any time during the first three years after the initial funding. Proceeds from the convertibles would be used to repay the loan.
The notes will be convertible into common stock at $2.00 per share.
About $15 million of the proceeds from the financing deal will be used to repay the company's current facility with affiliates of Tennenbaum Capital Partners.
Based in Camarillo, Calif., Vitesse sells semiconductor solutions for communications and storage networks. The company announced on Thursday that it has agreed to sell its storage products business and focus on its networking and Ethernet markets.
Issuer: | Vitesse Semiconductor Corp.
|
Issue: | Senior unsecured convertible note purchase agreement
|
Amount: | Up to $45 million
|
Tenor: | Three years
|
Price: | Par
|
Conversion price: | $2.00
|
Investor: | Whitebox VSC, Ltd.
|
Pricing date: | Aug. 23
|
Stock symbol: | Pink Sheets: VTSS
|
Stock price: | $1.02 at close Aug. 23
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.