By Devika Patel
Knoxville, Tenn., Sept. 12 - Powerwave Technologies Inc. negotiated a $150 million three-year secured term loan on Sept. 10, according to an 8-K filed Wednesday with the Securities and Exchange Commission. P-Wave Holdings, LLC is the agent. The company has already secured an initial $35 million and has commitments for an additional $15 million and then an additional $100 million upon achieving certain milestones.
Interest will accrue on the three-year term loans at a rate per annum equal to 14% in the first year and at 17% after the first year.
Investors will also receive a three-year warrant, exercisable for 75,000 shares at $0.50 per share, for every $1 million invested. The strike price reflects a 31.58% premium to the Sept. 10 closing share price of $0.38.
Proceeds will be used for working capital and general corporate purposes.
Powerwave is a Santa Ana, Calif.-based supplier of end-to-end wireless services for wireless communications networks.
| Issuer: | Powerwave Technologies Inc.
|
| Issue: | Secured term loan
|
| Amount: | $150 million
|
| Maturity: | Three years
|
| Coupon: | 14% in the first year, 17% after the first year
|
| Warrants: | For 75,000 shares for each $1 million
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.50
|
| Agent: | P-Wave Holdings, LLC
|
| Fees: | $180,000
|
| Settlement date: | Sept. 11
|
| Stock symbol: | Nasdaq: PWAV
|
| Stock price: | $0.38 at close Sept. 10
|
| Market capitalization: | $18.54 million
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