eASIC announces plans to price initial public offering of common stock

Proceeds may be used for repayment of revolving line of credit, loans

By Devika Patel

Knoxville, Tenn., Feb. 19 – eASIC Corp. plans to conduct an initial public offering of its common stock with a greenshoe, according to a Form S-1 filed Thursday with the Securities and Exchange Commission. The company has registered up to $75 million of stock.

Morgan Stanley and Deutsche Bank Securities; Raymond James, Baird and William Blair; and Roth Capital Partners and Northland Capital Markets are assisting.

Proceeds will be used for general corporate purposes, including working capital, sales and marketing activities, product development, general and administrative matters and capital expenditures.

The company also reported in the filing that it plans to prepay the debt under the company’s revolving line of credit with Silicon Valley Bank, which is due on Sept. 25, 2016 and carries a floating-rate coupon of Prime plus 150 basis points, and its 2013 and 2014 term loan facilities with Horizon Technology Finance Corp., Horizon Funding Trust 2013-1, DBD Credit Funding LLC and Fortress Credit Opportunities I, LP. The 11% notes issued under the 2013 loan are due on Oct. 1, 2017. The 10.75% secured notes issued under the 2014 loan mature on April 1, 2018. The company may also use the proceeds for acquisitions or investments.

The software developer is based in Santa Clara, Calif. The company intends to list its common stock on the Nasdaq under the symbol “EASI.”

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