Nextwave Wireless, a San Diego-based maker of embedded multimedia software used in cell phones and other mobile devices, said Oct. 10 it raised $100 million by issuing senior subordinated secured second-lien notes.
The buyers, Avenue Capital Management and Sola, are receiving 14 percent annually on debt that matures Dec. 31, 2010.
The buyers also receive warrants to purchase 40 million shares of Nextwave common stock at a penny per share.
Nextwave has been hurt by a global delay in adopting next generation telecom technology, and had to sell its infrastructure businesses. For the most recent quarter, the company reported a net loss of $91.8 million on revenue of $31.8 million. That compared to a net loss of $72 million on revenue of $12.8 million for the like quarter last year.
In midday trading on Nasdaq Oct. 10, shares of Nextwave, traded under WAVE, were at 38 cents, and have ranged from 30 cents to $7.59 over the past 52 weeks.
, Mike Allen