Lynne Bolduc and Team Close $30 Million Debt Financing for Nasdaq Company
July 9, 2024
Partner, Lynne Bolduc; Senior Attorney, William Miller; and Paralegal, Kaylee Poynter of FitzGerald Kreditor Bolduc Risbrough LLP represented an investor consortium, known as EdgeCo, LLC, in making a second secured loan of $15 million for a total of $30 million to DZS Inc. (Nasdaq: DZSI).
On May 31, 2024, 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 million. The principal amount of the Loan is payable on May 31, 2027 and bears interest at a fixed rate of 13.0% per annum. The Loan is secured by certain assets of the Company.
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.
On December 29, 2023, the FKBR Legal Team closed the first $15 million loan from EdgeCo to DZS.
About Lynne Bolduc
Lynne Bolduc, Partner at FitzGerald Kreditor Bolduc Risbrough LLP, has 30 years of experience with business and financing transactions, for both public and private companies, as well as investors.
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.
