FitzGerald Kreditor Bolduc Risbrough LLP Partner, Lynne Bolduc, and Team Facilitate $15 Million Loan Transaction
January 9, 2024
Partner, Lynne Bolduc; Attorney, William Miller; and Paralegal, Kaylee Poynter of FitzGerald Kreditor Bolduc Risbrough LLP represented an investor consortium, known as EdgeCo, LLC, in making a secured loan of $15 million to DZS Inc. (Nasdaq: DZSI).
On December 29, 2023, DZS Inc., as borrower (the “Company”), entered into a Loan Agreement with EdgeCo, LLC, as lender. Pursuant to the Loan Agreement, the Company received a three-year term loan in an aggregate principal amount equal to $15,000,000. The principal amount of the Loan is payable on December 29, 2026 and bears interest at a fixed rate of 13.0% per annum. The Loan is secured by certain assets of the Company.
The Loan Agreement also (i) includes preemptive rights that allow EdgeCo to exercise a right of first refusal in the event the Company decides to seek additional debt financing of up to $15 million for additional operating capital or to offer for sale additional unregistered shares of its common stock before December 31, 2026 and (ii) provides EdgeCo with the right to designate a member of the Company’s Board of Directors.
In connection with the Loan Agreement, the Company also entered into (i) a Warrant Agreement that issued a warrant to EdgeCo to subscribe for 6,100,000 shares of Common Stock at an exercise price of $1.84 per share, which represents the closing price of the Common Stock on NASDAQ on the trading day immediately preceding the date of the Warrant Agreement, and (ii) a Registration Rights Agreement that provides EdgeCo customary demand and piggyback registration rights for the 6,100,000 shares of Common Stock underlying the warrant.
The FKBR team worked quickly to successfully complete this transaction on an expedited timeframe within two weeks during the holidays to meet their client’s needs of closing prior to the end of the year.
About Lynne Bolduc
Lynne Bolduc, Partner at FitzGerald Kreditor Bolduc Risbrough LLP, has nearly 30 years of experience with business and financing transactions, for both public and private companies, as well as investors.
Need Assistance with a Public or Private Offering, Merger, Sale, Acquisition, or Other Business or Finance Transaction?
Investors, entrepreneurs, and businesses considering a private or public offering or other business or finance transaction should contact Lynne Bolduc at (949) 788-8900 or by email to LBolduc@FKBRLegal.com to schedule a confidential consultation to evaluate their options.
