California-based holding company Inseego Corp. (Nasdaq: INSG) has commenced an offer to exchange USD1,000 principal amount of 5.50% Convertible Senior Notes due 2020 issued by its subsidiary Novatel Wireless, Inc. for USD1,000 principal amount of 5.50% Convertible Senior Notes due 2022 to be issued by Inseego Corp., the company said.
Concurrently with the exchange offer, Novatel Wireless, Inc. is soliciting consents from each holder of the Novatel Wireless Notes to amend the terms of the Novatel Wireless Notes and the indenture governing such notes to eliminate certain events of default and substantially all of the restrictive covenants in the Novatel Wireless Notes, including the merger covenant.
Inseego is conducting this exchange to facilitate the sale of its mobile broadband business, which includes its MiFi branded hotspots and USB modem product lines (which is currently operated by Novatel Wireless, Inc.) to T.C.L. Industries Holdings (H.K.) Limited, a Hong Kong limited liability company, and Jade Ocean Global Limited, a British Virgin Islands business company, for cash consideration of USD50.0 million.
The consummation of the sale is expected to occur in the first quarter of 2017.
Jefferies LLC is acting as dealer manager for the exchange offer and consent solicitation and D.F. King & Co., Inc. is acting as exchange agent and information agent for the exchange offer and consent solicitation.
Inseego provides 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. It is headquartered in San Diego, California.