Palm shareholders to vote on recapitalization plan on Sept. 12

By Lisa Kerner

Charlotte, N.C., Aug. 10 - Palm Inc. shareholders will vote Sept. 12 at noon ET in California on a $325 million recapitalization agreement with Elevation Partners, LP.

Under the planned recapitalization, Elevation Partners will invest $325 million in Palm through the purchase of a new series of convertible preferred stock with a conversion price of $8.50 per share.

As previously reported, shareholders will receive a $9.00-per-share cash distribution that will be funded by a $400 million term loan, existing cash and the Elevation investment. The amount of total proceeds to be distributed to shareholders is estimated to be about $940 million.

Upon completion of the transaction, Elevation will own about 25% of Palm's outstanding common stock on an as-converted and diluted basis.

Palm is a Sunnyvale, Calif., mobile computing devices company.

© 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.