MONTVALE, N.J.-Geotek Communications Inc. said it has raised $75 million in private financing, and obtained a commitment for a $40 million credit facility from Soros Investment Partnership.
Geotek will use the funds to finance Frequency Hopping Multiple Access communication networks it is building in the Eastern United States.
To raise the $75 million, Geotek issued five-year, 12 percent senior subordinated convertible notes to a group of investors. The notes are convertible by the holders after the first anniversary of the closing, into common stock at a conversion price of $9.50.
In a separate transaction, Soros Investment Partnership committed to a $40 million credit facility that will be structured as a series of 10 percent, six-year senior notes. The company will grant the lender five-year detachable warrants to purchase 4.2 million shares of the company’s common stock, exercisable at $9.50.
