eGain amends agreement concerning $8.5 million promissory notes

By Devika Patel

Knoxville, Tenn., Sept. 25 - eGain Communications Corp. said it has amended the terms of its agreement with the holders of $8.5 million of the company's subordinated secured promissory notes.

The investors are eGain's chief executive officer, Ashutosh Roy, Oak Hill Capital Partners, LP, Oak Hill Capital Management Partners, LP and FW Investors V, LP.

Under the new agreement, eGain and the investors have agreed to convert about $6.5 million of the outstanding debt, or about $13.8 million of principal and interest as of Sept. 24, into common shares at a price per share of $0.95.

They also agreed to extend the remaining notes' maturity date to March 31, 2012 from March 31, 2009.

In exchange for these concessions, the investors received warrants for 1,525,515 common shares, which are exercisable at $0.95.

eGain develops customer service and contact center software and is based in Mountain View, Calif.

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