Inseego Announces Proposed Public Offering of Convertible Senior Notes

About this update from Inseego Corp.

[{"type":"text","content":" SAN DIEGO--(BUSINESS WIRE)--\nInseego Corp. (Nasdaq: INSG) (the “Company”), a pioneer in 5G and intelligent IoT device-to-cloud solutions, today announced that it has commenced an underwritten public offering (the “Offering”), subject to market and other conditions, of an aggregate of $100.0 million in principal amount of its convertible senior notes due 2025 (the “Notes”). The Company expects to grant the underwriters a 30-day option to purchase up to an additional $15.0 million in aggregate principal amount of the Notes in connection with the Offering, solely to cover over-allotments.\n\n\nThe 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. Holders of the Notes will be able to convert their Notes into shares of our common stock at their option, at any time, until the close of business on the scheduled trading day immediately before the maturity date. Under certain circumstances, the Notes will be redeemable, in whole or in part, for cash at our option at any time, and from time to time, on or after May 6, 2023 and on or before the scheduled trading day before the maturity date. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of the pricing of the Offering. Immediately following the Offering, the Company intends to exchange approximately $44.8 million principal amount of its existing 5.50% convertible senior notes due 2022 for a combination of cash and $75.0 million principal amount of Notes in concurrent private placement transactions (the “Private Exchange Transactions”). Notes issued in the Private Exchange Transactions will be part of the same series as the Notes issued in the Offering, but will be subject to certain transfer restrictions that will not be applicable to the Notes issued in the Offering. The Offering is not conditioned upon the closing of the Private Exchange Transactions, but the Private Exchange Transactions are conditioned upon the closing of the Offering.\n\n\nThe 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 considerat...

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