Vitesse Semiconductor amended its senior secured loan agreement with Whitebox VSC Ltd. giving the Company rights of pre-payment, modifying interest rates and extending the maturity date to August 31, 2016. As part of the loan refinancing, Vitesse repurchased $13.7 million of convertible second lien debentures held by Whitebox, reducing the company's total indebtedness. The new terms provide Vitesse with working capital to further fuel its new product growth strategy and supports increasing stockholder value.
"Vitesse is committed to managing our capital structure in order to achieve sustained profitability," said Chris Gardner, CEO of Vitesse. "This loan resolution provides us with the flexibility to use our cash to pre-pay our debt, enabling us to further de-leverage the Company. Greater cash flexibility allows Vitesse to make prudent near-term investments to amplify the market traction of our new and next-generation product portfolios thereby increasing stockholder value."
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