Internet of Things solutions provider Inseego Corp. (successor issuer to Novatel Wireless, Inc.) (Nasdaq: INSG) has released final results of its recent consent solicitation and offer to exchange USD1,000 principal amount of 5.50% convertible senior notes due 2020 issued by Novatel Wireless, Inc., a wholly owned subsidiary of Inseego Corp., for USD1,000 principal amount of 5.50% convertible senior notes due 2022 to be issued by Inseego Corp., the company said.
The exchange offer and consent solicitation expired immediately following 11:59 p.m., New York City time, on January 5, 2017.
As of the expiration of the exchange offer and consent solicitation, USD119,750,000 aggregate principal amount of the Novatel Wireless notes had been validly tendered for exchange and not withdrawn, representing approximately 99.79% of the outstanding Novatel Wireless notes. A total of USD119,750,000 of Inseego notes will be issued in exchange for such tendered Novatel Wireless notes. A total of USD250,000 principal amount of Novatel Wireless notes will remain outstanding after settlement of the exchange offer.
As Inseego Corp. also received the necessary consents to amend the Novatel Wireless notes and related indenture, those Novatel Wireless notes that will remain outstanding following the settlement of the exchange offer will be subject to the terms of a supplemental indenture implementing the amendments approved by the consenting holders.
Inseego Corp. expects that the settlement of the exchange offer will occur on January 9, 2017.
Inseego Corp. conducted this exchange offer and consent solicitation in order to facilitate the planned sale of its mobile broadband business to T.C.L. Industries Holdings (H.K.) Ltd, a Hong Kong limited liability company, and Jade Ocean Global Ltd, 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). It is headquartered in San Diego, California.