Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for Edgio, Inc. > News item |
Edgio agrees to swap $118.87 million 2025 notes for new 2027 notes
By Marisa Wong
Los Angeles, Nov. 15 – Edgio, Inc. entered into a private exchange on Nov. 14 with Lynrock Lake Master Fund LP, holding an aggregate of $118.87 million principal amount of Edgio’s outstanding 3.5% convertible senior notes due 2025, according to an 8-K filing with the Securities and Exchange Commission.
In exchange for Lynrock’s existing notes, Edgio issued Lynrock $118.87 million aggregate principal amount at maturity of new 3.5% cash/16% payment-in-kind senior secured convertible notes due Nov. 14, 2027.
The new notes will be secured by first priority security interests in substantially all of the assets of the company and will be guaranteed by all existing and future wholly owned domestic subsidiaries.
If approved by shareholders, the new notes will be convertible at certain times into common shares of Edgio at an initial conversion rate of 684.93 common shares per $1,000 principal amount of new notes, equivalent to an initial conversion price of about $1.46 per share, subject to anti-dilution provisions and a beneficial ownership limitation of the company’s common stock, on a post-conversion basis of 4.99%. The initial conversion price represents a premium of about 124.62% over the last reported sale price of Edgio’s stock on the Nasdaq Capital Market of $0.65 per share on Nov. 13.
U.S. Bank NA is the trustee.
Edgio, formerly Limelight Networks, Inc., provides content delivery services to stream digital content over the internet. The company is based in Phoenix, Ariz.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.