SAN DIEGO--(BUSINESS WIRE)--Aug. 24, 2017--
Inseego Corp. (Nasdaq: INSG), a leading global provider of
software-as-a-service ("SaaS") and mobile broadband solutions for
the Internet of Things (“IoT”), entered into a Credit Agreement with
certain funds managed by Highbridge Capital Management, LLC on August
23, 2017. Pursuant to the credit agreement, the lenders provided the
Company with a new term loan facility in the principal amount
of $48.0 million (the “Loan”) with a maturity date of August 23, 2020.
The Loan will bear interest at a rate per annum equal to LIBOR, but in
no event less than 1.00%, plus 7.625%. A portion of the proceeds from
the Loan was used to repay all amounts outstanding under the Company’s
previous Senior Credit Agreement due May 8, 2018.
“With the announcement of Inseego’s restructuring plan in June 2017 and
the solid progress in our cost reduction efforts to date, we are in a
great position to refinance our current short-term credit facility at
better overall terms and to materially extend the maturity date. The new
3-year term loan has a significantly lower interest rate and provides
$14.5 million of incremental liquidity to support our overall business
objectives. The new credit facility provides Inseego the runway and
flexibility to pursue our stated objectives of cost reductions,
increased gross margins and profitable growth in the areas of the
business with the highest ROI,” said Dan Mondor, President and Chief
Executive Officer.
As part of the transaction, and included in the $48.0 million term loan,
the Company exchanged approximately $14.9 million of the existing
Convertible Notes due 2022 into approximately $11.9 million of the new
term loan facility and 2.0 million shares of the Company's common stock.
Jonathan Segal, managing director of Highbridge Capital Management, LLC,
said, “We are supportive of the management team’s strategy to right-size
the cost side of the business, accelerate the Company's growth and
increase free cash flow generation. Following the solid progress to date
both in cost savings and customer wins, we believe this access to
additional capital will provide Inseego the ability to significantly
improve its profitability.”
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is a leading global provider of
MiFi®-branded intelligent wireless solutions for the worldwide mobile
communications market and 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 through Inseego North America
(formerly Feeney Wireless). 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 within the meaning of the Private Securities Litigation
Reform Act of 1995. In this context, forward-looking statements often
address expected future business and financial performance and often
contain words such as "may," "estimate," "anticipate," "believe,"
"expect," "intend," "plan," "project," "will" and similar words and
phrases indicating future results. The information in this news release
related to the time period needed to pursue the Company’s stated
objectives, as well as other statements that are not purely statements
of historical fact, are forward-looking in nature. 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 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/20170824005315/en/
Source: Inseego Corp.
Inseego Corp.
Stephen Smith
Executive Vice President &
CFO
(858) 247-2149
Stephen.smith@inseego.com
