By Angela McDaniels
Tacoma, Wash., June 4 – Novatel Wireless, Inc. priced $120 million of 5.5% convertible senior notes due 2020 with a 25% conversion premium, according to a company news release.
Prior to Dec. 15, 2019, the notes are convertible only upon the satisfaction of certain conditions and during certain periods. They are freely convertible after that date. The company can settle conversions in cash, stock or a combination of cash and stock.
Beginning June 15, 2018, the convertibles are callable at par if the company’s closing share price equals or exceeds 140% of the then-current conversion price for a specified period of time.
Proceeds will be used to finance proposed acquisitions of, or investments in, complementary businesses, products, services and technologies and for general corporate purposes.
Novatel is a San Diego-based provider of solutions for the Internet of Things and inventors of MiFi technology.
| Issuer: | Novatel Wireless, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $120 million
|
| Maturity: | June 15, 2020
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $5.00
|
| Conversion ratio: | 200 shares
|
| Call option: | Beginning June 15, 2018 subject to 140% hurdle
|
| Pricing date: | June 4
|
| Settlement date: | June 10
|
| Stock symbol: | Nasaq: MIFI
|
| Stock price: | $4.00 at close June 4
|
| Market capitalization: | $200.51 million
|
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