Comtech announces $45M investment from White Hat

Comtech announced a $45M investment by current shareholders White Hat, an investment firm, and funds affiliated with Magnetar. In connection with the investment, the company exchanged all outstanding shares of Comtech’s existing convertible preferred stock for a new series of convertible preferred stock. Comtech expects to apply the proceeds of this investment across a range of initiatives which not only support near-term working capital needs and general corporate purposes, including the repayment of certain outstanding indebtedness, but also its growth prospects. White Hat and Magnetar purchased $45M of a new series of convertible preferred stock and exchanged all outstanding shares of Comtech’s existing convertible preferred stock for shares of the new series of convertible preferred stock. The preferred stock will be convertible into shares of Comtech common stock at a conversion price of $7.99 per share; carries a 9% dividend, payable in kind, or a 7.75% dividend, payable in cash, at Comtech’s election; and contains an optional redemption date of October 31, 2028.