Looks like a good deal ! Was this the Conference subject Wed ?
CHATSWORTH, CALIF. (Sept. 16) BUSINESS WIRE -Sept. 16, 1996-- StreamLogic Corporation (NASDAQ:STLC) today announced an amended agreement with the advisor to the holders of approximately 80% of its $75 million 6% Convertible Subordinated Debentures (Loomis Sayles & Co., L.P.) pursuant to which Loomis agreed to advise such holders to exchange their debentures for a package of cash, increasing rate unsecured promissory notes, common stock and warrants to purchase common stock.
The amendment to the terms of the original agreement dated June 14, 1996 with Loomis Sayles removes the conditions based on the company's stock price, fixes the number of shares of common stock to be issued, increases the number of directors on the company's board of directors and allows under certain circumstances payment of a portion of the previously agreed to cash until 1998.
"We are very pleased to have successfully renegotiated an agreement that would strengthen our balance sheet and supports our efforts to restructure the company," said J. Larry Smart, President and CEO of StreamLogic Corporation.
Pursuant to the amended agreement, StreamLogic plans to commence a tender offer for the Debentures shortly. In the tender offer the company will offer to exchange its Debentures for a package of cash, unsecured promissory notes, common stock, and warrants to purchase common stock.
For each $1,000 face amount of debentures tendered the holders will receive (a) $120 in cash, (b) $113.33 in increasing rate unsecured promissory notes, (c) approximately 148.5 shares of common stock, and (d) warrants to purchase 40 shares of common stock at an initial exercise price of $5.25 per share of common stock as defined in the agreement. The exercise price of the warrants remains subject to downward adjustment in certain circumstances, and contains customary antidilution adjustments. Shareholder approval will be required pursuant to Nasdaq rules and regulations.
If the holders of 100% of the outstanding debentures accept the exchange, the Company will exchange the debentures for (a) $9 million in cash, (b) $8.5 million in increasing rate unsecured promissory notes due 1998, (c) approximately 11.1 million shares of common stock, and (d) warrants to purchase 3.0 million shares of common stock, in which case the transaction would increase the Company's net tangible assets by more than $50 million.
Certain institutional investors who hold in the aggregate approximately 80% of the outstanding Debentures will be advised by Loomis Sayles to exchange their Debentures for the package of cash, unsecured promissory notes and securities offered by the Company subject to certain conditions contained in the amended agreement.
The obligations of Loomis Sayles to advise the holders to participate in the tender offer remains subject to various conditions including, among others, satisfaction of all necessary regulatory requirements and a 95% participation by debenture holders. In addition, such holders are not obligated to participate. As a result, there can be no assurance that the tender offer will be consummated.
Offers to exchange the Debentures will be made only pursuant to the tender offer, and no offer is being made at this time.
StreamLogic develops and markets leading-edge video delivery, digital media storage, and networking RAID and data management solutions. Current product offerings include VIDEON, the industry's first family of video-on-demand server subsystems, the innovative Video Disk Recorder (VDR) video editing appliance, the award-winning Hammer high-performance storage products, and the industry leading RAIDION family of fault-tolerant network RAID and data management solutions.
The company sells to OEMs and systems integrators and has a well-established international network of distribution and dealer channel partners. StreamLogic corporate headquarters are located in Chatsworth, with marketing, sales, engineering, customer service, and manufacturing operations in Menlo Park and Chatsworth, Calif. -0-
Note to Editors: StreamLogic, VIDEON, Hammer, and RAIDION, are trademarks or registered trademarks of StreamLogic Corporation. Additional information on StreamLogic can be found at streamlogic.com
--30--lmm/sf
CONTACT: StreamLogic IR
Lee Hilbert, 818/701-8404
Barbara Scherer, 818/701-8402
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or 800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473 Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com
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