By Sheri Kasprzak
New York, March 28 - Vyyo Inc. is gearing up to close a $35 million private placement of unsecured convertible notes with Goldman, Sachs & Co.
The offering includes $17.5 million in new funding and $17.5 million to pay off notes issued to Goldman in 2006.
The five-year notes bear interest at 5% annually and are convertible into 3.5 million common shares at $10.00 each. The conversion price is a 34% premium to the company's $7.47 closing stock price on Tuesday.
The notes are redeemable at 101% of the principal amount plus interest subject to certain conditions.
Proceeds will be used to deploy the company's spectrum overlay and business services solutions for the cable industry.
The offering is set to close this week.
Based in Norcross, Ga., Vyyo develops technologies used to expand cable operators' hybrid-fiber coax network capacity.
| Issuer: | Vyyo Inc.
|
| Issue: | Unsecured convertible notes
|
| Amount: | $35 million
|
| Maturity: | Five years
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion price: | $10.00
|
| Conversion ratio: | Into 3.5 million shares
|
| Call: | Redeemable at 101% of par plus interest
|
| Warrants: | No
|
| Investor: | Goldman, Sachs & Co.
|
| Announcement date: | March 28
|
| Stock symbol: | Nasdaq: VYYO
|
| Stock price: | $7.47 at close March 27
|
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