SAN DIEGO--(BUSINESS WIRE)--
Inseego Corp. (Nasdaq: INSG) (the "Company"), a leading global provider
of software-as-a-service ("SaaS") and solutions for the Internet of
Things ("IoT"), and certain of its direct and indirect subsidiaries
entered into a Credit Agreement (the "Credit Agreement") with Lakestar
Semi Inc., a private investment fund managed by Soros Fund Management
LLC (the "Lender") on May 8, 2017. Pursuant to the Credit Agreement, the
Lender provided the Company with a term loan in the principal amount of
$20.0 million (the "Loan") with a maturity date of May 8, 2018 (the
"Maturity Date").
"I am very pleased to announce this funding, which provides Inseego with
the necessary financing to pursue our near-term objectives, including
the sale of the MiFi business and investing in our growing Ctrack and
Inseego North America businesses," said Sue Swenson, Chief Executive
Officer.
The Loan is secured by a first priority lien on substantially all of the
assets of the Company, including its equity interests in certain of its
direct and indirect subsidiaries, subject to certain exceptions and
permitted liens. The Credit Agreement includes customary representations
and warranties, as well as customary reporting and financial covenants.
The Company also paid a $2.0 million commitment fee in conjunction with
the closing of the Loan, and is required to repay the Loan with the
proceeds from any sale of significant assets, including its pending
divestiture of its MiFi mobile broadband business.
Interest on the Loan will be payable on the last business day of each
calendar month and on the Maturity Date. The Loan will bear interest at
a rate per annum equal to the three-month LIBOR, but in no event less
than 1.00%, plus 10.00%.
In addition, upon entering into the Credit Agreement described above,
the Company terminated its revolving credit facility with Wells Fargo
Bank, National Association, dated as of October 31, 2014 (as amended,
modified and supplemented from time to time, the "Prior Credit
Agreement"). The Prior Credit Agreement provided for a $10.0 million
secured revolving credit facility.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is a leading global provider of
software-as-a-service (SaaS) and solutions for the Internet of Things
(IoT). The Company sells its telematics solutions under the Ctrack
brand, including its fleet management, asset tracking and monitoring,
stolen vehicle recovery, and usage-based insurance platforms. Inseego
Corp. also sells business connectivity solutions and device management
services. Inseego Corp. has over 30 years of experience providing
customers with secure and insightful solutions and analytics, with
approximately 633,000 global subscribers, including 189,000 fleet
management subscribers. The Company is headquartered in San Diego,
California. www.inseego.com
Twitter @inseego
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute forward-looking
statements. These forward-looking statements relate to a variety of
matters, including, without limitation, statements regarding the timing
and likelihood of the consummation of the proposed sale of Novatel
Wireless, Inc. (the "Sale") and conditions precedent to consummating the
proposed Sale. These forward-looking statements are made on the basis of
the current beliefs, expectations and assumptions of the management of
the Company and are subject to significant risks and uncertainty.
Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements speak
only as of the date they are made, and the Company undertakes no
obligation to update or revise these statements, whether as a result of
new information, future events or otherwise, except as may be required
by law. These forward-looking statements involve many risks and
uncertainties that may cause actual results to differ materially from
what may be expressed or implied in these forward-looking statements.
For example, there can be no assurance that CFIUS will approve the sale
of Novatel Wireless to TCL. The consummation of the proposed Sale is
subject to a number of closing conditions, including absence of
governmental restrictions, and the failure to satisfy any one of these
conditions could result in the transaction not closing. For a further
discussion of risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as well
as risks relating to the business of Inseego Corp. in general, see the
risk disclosures in our Annual Report on Form 10-K for the year ended
December 31, 2016, and in other subsequent filings made with the SEC by
Inseego Corp. (available at www.sec.gov).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170510006326/en/
Inseego Corp.
Media Relations Contact:
Diana
Hoogbruin, (858) 812-0659
diana.hoogbruin@inseego.com
or
Investor
Relations Contact:
Michael Sklansky, (858) 431-0792
michael.sklansky@inseego.com
Source: Inseego Corp.
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