Inseego Corp. (Nasdaq: INSG), a pioneer in 5G and intelligent IoT device-to-cloud solutions, has announced that it has commenced an underwritten public offering (the “Offering”), subject to market and other conditions, of an aggregate of USD 100.0 million in principal amount of its convertible senior notes due 2025 (the “Notes”), the company said.
The Company expects to grant the underwriters a 30-day option to purchase up to an additional USD 15.0 million in aggregate principal amount of the Notes in connection with the Offering, solely to cover over-allotments.
The Notes will be senior unsecured obligations of the Company and will accrue interest payable semi-annually in arrears. The Notes will mature on May 1, 2025, unless earlier repurchased, redeemed or converted.
The Company intends to use a portion of the net proceeds from the Offering (i) to repay in full and terminate its existing credit agreement, which currently carries interest at a rate of 9.24% per annum, and (ii) to pay the cash consideration due in connection with the Private Exchange Transactions. The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes.
Stifel is acting as the sole book-running manager for the Offering.
Inseego is an industry pioneer in 5G and intelligent IoT device-to-cloud solutions that enables high performance mobile applications for large enterprise verticals, service providers and small-medium businesses around the globe.