Inseego Completes Material Debt Reduction in Closing Restructuring of Convertible Notes due 2025
Inseego announced the completion of its capital structure management initiative, successfully restructuring its 3.25% convertible notes due 2025. The company exchanged $91.5 million of face value of the notes for long-term debt and equity, resulting in the issuance of 2.4 million shares of common stock, $40.9 million in new senior secured notes due 2029, and warrants to purchase 2.1 million shares. Prior to this, Inseego had repurchased $55.5 million of the notes, totaling $147 million, or 91% of the original $162 million, significantly reducing its debt to $15 million. The new senior secured notes bear a 9.0% interest rate, payable semi-annually, and mature on May 1, 2029. Executive Chairman Philip Brace and CFO Steven Gatoff emphasized the strengthened position for future investments and growth.
Inseego ha annunciato il completamento della sua iniziativa di gestione della struttura di capitale, ristrutturando con successo le sue obbligazioni convertibili al 3,25% in scadenza nel 2025. L'azienda ha scambiato $91,5 milioni di valore nominale delle obbligazioni per debito a lungo termine e capitale, portando all'emissione di 2,4 milioni di azioni ordinarie, $40,9 milioni in nuove obbligazioni senior garantite in scadenza nel 2029 e warrant per l'acquisto di 2,1 milioni di azioni. Prima di questo, Inseego aveva riacquistato obbligazioni per $55,5 milioni, totalizzando $147 milioni, ossia il 91% dei $162 milioni originali, riducendo significativamente il suo debito a $15 milioni. Le nuove obbligazioni senior garantite hanno un tasso d'interesse del 9,0%, pagabile semestralmente, e scadono il 1° maggio 2029. Il presidente esecutivo Philip Brace e il CFO Steven Gatoff hanno sottolineato la posizione rafforzata per futuri investimenti e crescita.
Inseego anunció la finalización de su iniciativa de gestión de la estructura de capital, reestructurando con éxito sus notas convertibles al 3.25% que vencen en 2025. La empresa intercambió $91.5 millones de valor nominal de las notas por deuda a largo plazo y capital, resultando en la emisión de 2.4 millones de acciones ordinarias, $40.9 millones en nuevas notas senior garantizadas que vencen en 2029, y opciones para comprar 2.1 millones de acciones. Antes de esto, Inseego había recomprado notas por $55.5 millones, totalizando $147 millones, o el 91% de los $162 millones originales, reduciendo significativamente su deuda a $15 millones. Las nuevas notas senior garantizadas tienen una tasa de interés del 9.0%, pagadera semestralmente, y vencen el 1 de mayo de 2029. El presidente ejecutivo Philip Brace y el CFO Steven Gatoff enfatizaron la posición fortalecida para futuras inversiones y crecimiento.
인시고(Inseego)는 2025년 만기 3.25% 전환사채의 구조 조정을 성공적으로 완료했다고 발표했습니다. 이 회사는 전환사채의 명목 가치 9,150만 달러를 장기 채무 및 자본으로 교환하여 240만 주의 보통주, 4,090만 달러의 2029년 만기 신규 senior secured notes, 210만 주를 구매할 수 있는 워런트를 발행했습니다. 이와 이전에 인시고는 5,550만 달러의 전환사채를 재매입하여 원래의 1억 6천 2백만 달러의 91%에 해당하는 1억 4,700만 달러의 총액을 확보하여 부채를 1,500만 달러로 크게 줄였습니다. 새로운 senior secured notes는 9.0%의 이자율을 적용받으며, 반기마다 이자를 지급하고, 2029년 5월 1일 만기됩니다. 필립 브레이스(Philip Brace) 회장과 스티븐 가토프(CFO Steven Gatoff)는 미래 투자 및 성장을 위한 강력한 입장을 강조했습니다.
Inseego a annoncé l'achèvement de son initiative de gestion de la structure de capital, ayant réussi à restructurer ses obligations convertibles de 3,25 % arrivant à échéance en 2025. L'entreprise a échangé 91,5 millions de dollars de valeur nominale des obligations contre une dette à long terme et des capitaux propres, ce qui a conduit à l'émission de 2,4 millions d'actions ordinaires, de 40,9 millions de dollars de nouvelles obligations senior sécurisées arrivant à échéance en 2029 et de bons de souscription pour acheter 2,1 millions d'actions. Avant cela, Inseego avait racheté des obligations pour 55,5 millions de dollars, totalisant 147 millions de dollars, soit 91 % des 162 millions de dollars d'origine, ce qui a considérablement réduit sa dette à 15 millions de dollars. Les nouvelles obligations senior sécurisées portent un taux d'intérêt de 9,0 %, payable semestriellement, et arrivent à échéance le 1er mai 2029. Le président exécutif Philip Brace et le directeur financier Steven Gatoff ont souligné la position renforcée pour de futurs investissements et la croissance.
Inseego gab die Fertigstellung seiner Initiative zur Verwaltung der Kapitalstruktur bekannt und hat erfolgreich seine 3,25-%-Wandelanleihen, die 2025 fällig werden, restrukturiert. Das Unternehmen hat $91,5 Millionen Nennwert der Anleihen gegen langfristige Schulden und Eigenkapital getauscht, was zur Ausgabe von 2,4 Millionen Stammaktien, $40,9 Millionen in neuen gesicherten Senior-Anleihen mit Fälligkeit 2029 und Optionsscheinen für den Kauf von 2,1 Millionen Aktien führte. Zuvor hatte Inseego Anleihen im Wert von $55,5 Millionen zurückgekauft, was insgesamt $147 Millionen oder 91 % der ursprünglichen $162 Millionen ausmacht und die Verschuldung auf $15 Millionen erheblich reduzierte. Die neuen gesicherten Senior-Anleihen haben einen Zinssatz von 9,0 %, der halbjährlich zahlbar ist, und laufen am 1. Mai 2029 aus. Der Executive Chairman Philip Brace und CFO Steven Gatoff betonten die gestärkte Position für zukünftige Investitionen und Wachstum.
- Inseego reduced its debt by repurchasing or exchanging $147 million of its convertible notes.
- The company now has only $15 million of the 2025 Convertible Notes outstanding.
- New senior secured notes bear a 9.0% interest rate and mature in 2029.
- The new senior secured notes are secured by a first priority lien on substantially all of the company’s assets.
Company completes capital structure management initiative by exchanging
Company has now repurchased or exchanged at a discount approximately
SAN DIEGO, Nov. 12, 2024 (GLOBE NEWSWIRE) -- 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 completed its initiative to overhaul the Company’s capital structure to reduce total debt and restructure its outstanding
On November 6, 2024, the Company executed the exchange (the “Exchange Transactions”) of
Prior to the Exchange Transactions, the Company had previously completed discounted repurchases of an aggregate of
The Company has now repurchased or exchanged approximately
“Completing the restructuring of the 2025 Convertible Notes is a significant milestone for Inseego,” said Inseego Executive Chairman Philip Brace. “Inseego moves ahead in a much stronger position to invest in new products and market opportunities to grow our business and further increase stockholder value.”
The New Senior Secured Notes bear interest at
The Exchange Warrants have exercise prices ranging from
“We’re thrilled to have completed our restructuring and material debt reduction. By reducing the Company’s leverage and right-sizing the capital structure, we believe we have re-positioned Inseego to a position of strength for future success,” said Steven Gatoff, Inseego Chief Financial Officer.
As of the date hereof, affiliates of two of the Exchanging Noteholders - Golden Harbor Ltd. and North Sound Partners - may be deemed to beneficially own more than
Raymond James served as financial advisor and Greenberg Traurig LLP served as counsel to the Company in connection with the restructuring transactions.
For additional information, please refer to the 8-K filed with the U.S. Securities and Exchange Commission and available on Inseego’s investor relations website.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com #Putting5GtoWork
©2024. Inseego Corp. All rights reserved. MiFi and the Inseego name and logo are registered trademarks of Inseego Corp. Other company, product, or service names mentioned herein are the trademarks of their respective owners.
For more information, please contact:
Investor Relations
IR@inseego.com
Cautionary Note Regarding Forward-Looking Statements
Some of the information presented in this news 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 presented in this news release related to our future business outlook, the future demand for our products, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. We, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from our expectations.
Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the Company’s dependence on a small number of customers for a substantial portion of our revenues; (2) the future demand for wireless broadband access to data and asset management software and services and our ability to accurately forecast; (3) the growth of wireless wide-area networking and asset management software and services; (4) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (5) our ability to develop sales channels and to onboard channel partners; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on our ability to source components and manufacture our products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (12) litigation, regulatory and IP developments related to our products or components of our products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including the satisfaction of the conditions precedent to the planned sale of the Company’s telematics business, as well as restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, (18) the impact of import tariffs on our materials and products, and (19) the impact of geopolitical instability on our business.
These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law and our ongoing reporting obligations under the Securities Exchange Act of 1934, as amended.
Source: Inseego Corp.
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