Inseego Corp. (NASDAQ:INSG) (the "Company"), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises, and SMBs, announced today that it has entered into a series of agreements, as part of its overall capital structure management to reduce its total debt and restructure its outstanding 3.25% convertible notes due 2025 (the "2025 Notes"). As part of this initiative, the Company's three largest noteholders, whose holdings represent more than $125 million face value or nearly 80% of the outstanding 2025 Notes, have agreed to sell to the Company for cash, or exchange for long-term debt and equity of the Company, all of their 2025 Notes. This meaningful reduction and long-term extension of debt was executed at a 30% discount to the face value of the notes, further contributing to the improvement of the Company's capital structure.
In implementing this strategic capital structure initiative, the Company executed three overall transactions on June 28, 2024, as follows: (1) Convertible Debt Repurchase: the Company agreed to purchase all of the $45.9 million in face value of the 2025 Notes (the "Highbridge Notes") held by certain entities managed by Highbridge Capital Management, LLC (such entities, "Highbridge"), the second largest noteholder, for $32.1 million in cash, or $700 per $1,000 face value, plus accrued interest, the repurchase and debt reduction of which is expected to close on or about July 1, 2024; (2) Repurchase Loan: to finance a portion of the Convertible Debt Repurchase, the Company entered into a loan facility and borrowed $19.5 million from (i) South Ocean Funding, LLC ("South Ocean"), which is an affiliate of Golden Harbor Ltd. ("Golden Harbor") and Tavistock Financial, LLC, and (ii) certain participant lenders (the "Participating Lenders"); and (3) Convertible Debt Exchange: the Company entered into binding term sheets to exchange $80.0 million of face value that represents all of the 2025 Notes held by North Sound Partners and Golden Harbor (the "Noteholders"), the largest and third-largest noteholders, respectively, at the same 30% discount as the Highbridge Notes purchase, for a combination of new long-term debt and equity.
"With today's announcement, we are delivering on our commitment and taking meaningful steps to significantly reduce our debt burden and strengthen the Company's financial position," said Inseego Executive Chairman Philip Brace. "This is a tremendous result for Inseego, and we are pleased by the support from our existing stakeholders who have demonstrated their belief in the Company's future. While we still have some work to do, I believe that with this restructuring, coupled with our improving operational results, Inseego is well-positioned for long-term success."
To finance a portion of the $32.1 million Convertible Debt Repurchase of the Highbridge Notes, the Company borrowed $19.5 million (the "Loan") pursuant to a Loan and Security Agreement (the "Loan Agreement") with South Ocean and the Participating Lenders, which consist of Philip Brace, the Company's Executive Chairman, and North Sound Ventures, LP.
テクノロジーのリーダーであるInseego Corp.(NASDAQ:INSG)は、モバイルネットワークオペレーター、フォーチュン500企業、およびSMB向けの5Gモバイルおよび固定ワイヤレスソリューションで、総資本構造マネジメントの一環として、2025年に満期の3.25%転換社債を計405百万ドルに超える面積(以下「2025社債」)を現金で買い戻すか、長期債務および同社の株式と交換するために、最大の3つの債権者が全て同意したと本日発表しました。これは、現段階で2025社債の未払い残高のほぼ80%にあたる額面が買い戻された意義深い債務削減であり、その債務はノートの額面の30%割引価格で売却され、ロングタームの債務と株式に交換され、同社の資本構造の改善にさらに寄与しました。
この戦略的な資本構造イニシアチブを実施するにあたり、同社は2024年6月28日に以下の3つの取引を実行しました:(1)転換社債買取:同社は、Highbridge Capital Management、LLC(以下、「Highbridge」という)が運営する特定のエンティティが保有する2025社債の額面45.9百万ドルすべて(以下、「Highbridge社債」という)を$32.1百万ドルでキャッシュで買収することに同意しました。また、利子を加算して、返済と債務削減は2024年7月1日頃に完了するものと予想されます。(2)買取融資:転換社債買収の一部を資金調達するために、同社は貸付契約を締結して、Highbridge社債を持つ北Sound PartnersとGolden Harborが保有する2025年の額面8000万ドル全て(以下、「Noteholders」という)と同じ30%の割引価格で、長期債務と新しい株式の組み合わせと交換する予定でした。(3)転換社債交換:同社は、North Sound PartnersとGolden Harborが保有する2025年の全額面8000万ドルを同じ30%の割引価格でノート保有者と交換するために、拘束的な用語シートに署名しました。
「今回の発表により、私たちは当社のコミットメントを履行し、債務負担を大幅に減らし、会社の財務状況を強化するために意義のある取り組みを行っています。」とインシーゴ社のエグゼクティブ会長フィリップ・ブレイス氏は述べています。「これはInseegoにとって素晴らしい成果であり、当社の未来に対する信念を示してくれた既存のステークホルダーからの支持によって喜ばしいです。まだ少し改善が必要ですが、この再構築と、業績の改善により、Inseegoは長期的な成功に向けて良い位置にあります。」
Highbridge Notesの額面45.9百万ドルの転換社債買取の一部を資金調達するために、同社はPhilip Brace(同社のエグゼクティブ会長)とNorth Sound Ventures、LPからの融資契約(以下、「融資契約」という)に基づき$19.5百万ドル(「融資」)を融資しました。