Delphax Technologies Inc. Completes Refinancing of Credit Facility
Press release from the issuing company
MINNEAPOLIS, Feb. 5 -- Delphax Technologies Inc. announced today that it has completed new $13.7 million senior credit facilities with LaSalle Business Credit, LLC and its Canadian affiliate, replacing the Company's previous credit facility, which expired at the end of December 2003. The Company also separately issued in a private placement $3 million of 7% convertible subordinated notes accompanied by warrants to purchase common stock.
The new asset-based senior credit facilities, which expire on January 31, 2007, are composed of $1.2 million in term loans and $12.5 million of revolving credit commitments. The Company is currently using approximately $8.1 million of the senior credit facilities. The convertible subordinated notes bear interest payable in the form of shares of Company common stock and all principal is repayable in four years if the convertible notes are not converted. The conversion price is $3.20 per share, and the four-year warrants that accompanied the convertible notes permit the purchase of 515,625 shares of common stock at $3.51 per share.
"This arrangement provides essential financing to help us capitalize on our technological leadership in a growing digital printing marketplace," said Jay Herman, chairman and chief executive officer. "It is further affirmation of the soundness of our business model and growth strategy -- and a critically important step in assembling the capital resources needed to carry out that strategy."
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