Pulse Electronics Corporation Announces Closing of Oaktree Investment

Before you go, we thought you'd like these...
Before you go close icon

Pulse Electronics Corporation Announces Closing of Oaktree Investment

SAN DIEGO--(BUSINESS WIRE)-- Pulse Electronics Corporation (NYS: PULS) , a leading provider of electronic components, today announced the closing of its previously announced recapitalization investment by certain affiliates of investment funds managed by Oaktree Capital Management, L.P., an affiliate of Oaktree Capital Group, LLC (NYS: OAK) .

At the closing of the recapitalization, Pulse received $75 million in cash under new Term Loan A and issued to Oaktree 36,729,183 shares of Pulse's common stock and a warrant to purchase shares of a subsidiary that will terminate upon issuance of shares of a new class of Pulse non-voting preferred stock. The common stock issued to Oaktree, along with other common stock Oaktree already owned, represents approximately 49% of the outstanding common stock of Pulse. Additionally, Oaktree exchanged approximately $27.7 million of the company's $50 million in outstanding 7% senior convertible notes due 2014 for new Term Loan B.


Pulse's overall senior indebtedness increased to approximately $125 million following the recapitalization. Interest under Term Loans A and B is payable-in-kind by adding the interest to the loan balance.

Pulse used the proceeds to repay approximately $55 million outstanding under its senior credit agreement with its existing lenders and intends to use the remaining approximately $20 million for fees and expenses associated with the transactions, working capital, and general business purposes.

Ralph Faison, Pulse Chairman and Chief Executive Officer, stated, "We are very pleased to have closed this recapitalization transaction with Oaktree. The proceeds of this investment provide immediate improvement to our liquidity, address the maturity of our existing credit agreement, and significantly reduce our cash debt service costs. This investment provides Pulse with the time and resources to continue our operating initiatives and our long term growth strategy. The investment also demonstrates Oaktree's strong belief in the fundamental market and operational strength of the company."

The description of the terms of the recapitalization transactions contained in this press release is a summary. The company encourages you to read the full agreements which it filed as exhibits to a Current Report on Form 8-K with the Securities and Exchange Commission on November 16.

About Pulse Electronics Corporation

Pulse Electronics is the electronic components partner that helps customers build the next great product by providing the needed technical solutions. Pulse has a long operating history of innovation in magnetics, antennas and connectors, as well as the ability to ramp quickly into high-quality, high-volume production. The company serves the wireless and wireline communications, power management, military/aerospace and automotive industries. Pulse Electronics is a participating member of the IEEE, SFF, OIF, HDBaseT Alliance, CommNexus, and MoCA. For more information, visit the company's web site at www.pulseelectronics.com.

Safe Harbor

To the extent that statements in this press release are not strictly historical, such statements are "forward-looking" and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current information and expectations. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Examples of such risks include those related to the risk factors disclosed from time to time in the Company's SEC filings, including, but not limited to, those discussed in the Company's most recent reports on Form 10-K, 10-Q and 8-K, and any amendments thereto. All such risk factors are incorporated herein by reference as though set forth in full. The Company undertakes no obligation to update any forward looking statement.

Copyright © 2012 Pulse Electronics Corporation. All rights reserved. All brand names and trademarks are properties of their respective holders.



Pulse Electronics Corporation
Drew A. Moyer
Senior Vice President, Chief Financial Officer
858-674-8268
dmoyer@pulseelectronics.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Pulse Electronics Corporation Announces Closing of Oaktree Investment originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners