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MUMBAI:
Worldspace satellite radio has secured a $40 million financing
facility from Yenura Pte.
The
company secured a waiver of certain pre-payment obligations
owed to the holders of its existing debt.
The
facility supports the company's preparations for the launch
of its European mobile service in the Italian market and business
development activities in selected markets. However, Worldspace
will continue to seek to secure additional financing from
a variety of sources, including existing and new investors.
Under
the terms of the agreement, Worldspace must draw down the
money on or before 31 January.
For
every draw down, Worldspace will issue a subordinated convertible
note with an eight per cent annual interest rate. The interest
will be paid in arrears as additional principal, not cash.
The
notes will have a five-year maturity period from the issuance
date of the first note, but can be converted into Worldspace's
Class A common share at $4.25 a share.
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