Company also swaps debt for shares, acquires $21 million of new debt
By Devika Patel
Knoxville, Tenn., Oct. 12 - Hughes Telematics Inc. concluded a $19.99 million private placement of stock on Oct. 7, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 4,875,855common shares at $4.10 apiece. The price per share is a 2.5% premium to $4.00, the Oct. 6 closing share price.
Proceeds will be used for general corporate purposes.
The company also took on $21 million of new debt under its first-lien credit agreement. In addition, an affiliate of Apollo Global Management LLC exchanged about $5.9 million of debt under the first-lien credit agreement for 1,448,350 shares at a deemed exchange price of $4.10 per share, and the company exchanged about $23 million of debt under its second-lien credit agreement for 4,784,019 shares at an exchange price of $4.80 per share.
Based in Atlanta, Hughes develops and manages vehicle- and driver-centric solutions to improve the driving and ownership experience.
| Issuer: | Hughes Telematics Inc.
|
| Issue: | Common stock, loan
|
| Amount: | $19,991,006
|
| Shares: | 4,875,855
|
| Price: | $4.10
|
| Warrants: | No
|
| Settlement date: | Oct. 7
|
| Stock symbol: | OTCBB: HUTC
|
| Stock price: | $4.00 at close Oct. 7
|
| Market capitalization: | $140 million
|
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