SNR Denton recently advised San Diego based Pulse Electronics (NYSE:PULS) in securing a debt and equity investment of approximately $102.7 million with certain affiliates of Oaktree Capital Group, LLC (NYSE: OAK), a leading global investment management firm with approximately $81 billion under management.
This transaction will enable Pulse to repay $55 million outstanding under its senior credit agreement with its existing lenders and use $20 million for working capital and general business purposes. In addition, Oaktree has agreed to exchange $27.7 million of the company’s $50 million in outstanding 7% senior convertible notes due 2014. The new capital structure supports the company’s long term growth strategy and will allow Pulse to further strengthen its leadership in the electronics components industry.
“SNR Denton provided immeasurable assistance throughout the entire recapitalization process,” said Ralph Faison, Chief Executive Officer, Pulse Electronics. “Their breadth of expertise and intense focus on insuring that the transaction was fully evaluated and completed in a thorough yet expedient way was instrumental to achieving this significant milestone for Pulse.”
“SNR Dentons’ multidisciplinary transactional practice drove this high stakes global deal to close in an extraordinarily tight timeframe, which was critically important for the future growth prospects of the company,” said SNR Denton partner Victor H. Boyajian, who co-heads the firm’s Technology, Media and Telecommunications practice. “Our firm’s global platform enabled us to address numerous issues with the transaction that were impacted by the laws of multiple foreign jurisdictions, including Germany, Finland, Denmark, Singapore and China.”
The team comprised counsel from numerous practice groups – including venture technology, corporate and securities, creditor’s rights, capital markets, tax and benefits – as well as offices across the firm. Victor H. Boyajian led the Pulse team that included Peter Wolfson, Ira Kotel, Jo Christine Reed, Jeffrey Murphy, Jeff Korenblatt, Chip Korn, Chris Smith and Walter Van Dorn.
