Workstream exchanges $19 million in notes for 9.5% notes, convertibles

By Devika Patel

Knoxville, Tenn., Dec. 14 - Workstream Inc. negotiated an exchange of its $19 million in senior secured promissory notes.

Each of the investors agreed to exchange their notes for $9.5 million in 9.5% senior secured non-convertible notes due July 31, 2012; $6.65 million in senior secured convertible notes, which are convertible into common shares at $0.25 per share; and $2.85 million in senior secured convertible notes, which are convertible into shares at $0.10 per share.

"In summary, we have extended the maturity of our notes out 32 months to July 2012, provided an equity feature to our note holders allowing the company more time to build our business with them, and as partners, share in our success while we continue to grow," chief executive officer Michael Mullarkey said in a press release.

The company issued $21.51 million in notes under the exchange agreement.

Workstream, with headquarters in Maitland, Fla., develops software used to manage workforce employment lifecycles.

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