DDL Electronics Enters $5.3-Million Debt Deal
DDL Electronics in Newbury Park says it has successfully refinanced $5.3 million in corporate debt by securing a loan from a private investor.
The company has repaid in full $5.3 million of secured notes that were due July 1.
To raise a portion of the funds needed to pay off the 10% notes, DDL borrowed $2 million from a private investor on June 30 under an 8% promissory note, which is convertible into DDL common stock at 75 cents per share.
The convertible note matures Aug. 31, 1998, and is secured by a pledge of all the outstanding shares of SMTEK Inc., DDL Electronic’s U.S. operating subsidiary. DDL also agreed to give the investor, whom it declined to identify, two seats on its seven-person board of directors.
In addition, DDL has agreed to acquire a privately held electronics manufacturing company in Florida, which is controlled by the investor, for 9 million shares of DDL’s common stock. This acquisition is subject to the approval of DDL’s stockholders and to obtaining a fairness opinion on the transaction.
DDL provides manufacturing services for electronic equipment manufacturers. It also produces printed circuit boards for use primarily in the computer, communications and instrumentation industries. Its facilities are located in Southern California and Northern Ireland.
