Inseego Corp., a global provider of software-as-a-service (SaaS) and solutions for the Internet of Things (IoT), and certain of its direct and indirect subsidiaries entered into a Credit Agreement with Lakestar Semi Inc., a private investment fund managed by Soros Fund Management LLC on May 8, 2017. Pursuant to the Credit Agreement, the Lender provided the Company with a term loan in the principal amount of $20.0 million with a maturity date of May 8, 2018. 

“I am very pleased to announce this funding, which provides Inseego with the necessary financing to pursue our near-term objectives, including the sale of the MiFi business and investing in our growing Ctrack and Inseego North America businesses,” said Sue Swenson, Chief Executive Officer.

The Loan is secured by a first priority lien on substantially all of the assets of the Company, including its equity interests in certain of its direct and indirect subsidiaries, subject to certain exceptions and permitted liens. The Credit Agreement includes customary representations and warranties, as well as customary reporting and financial covenants. The Company also paid a $2.0 million commitment fee in conjunction with the closing of the Loan, and is required to repay the Loan with the proceeds from any sale of significant assets, including its pending divestiture of its MiFi mobile broadband business.

Interest on the Loan will be payable on the last business day of each calendar month and on the Maturity Date. The Loan will bear interest at a rate per annum equal to the three-month LIBOR, but in no event less than 1.00%, plus 10.00%.

In addition, upon entering into the Credit Agreement described above, the Company terminated its revolving credit facility with Wells Fargo Bank, National Association, dated as of October 31, 2014. The Prior Credit Agreement provided for a $10.0 million secured revolving credit facility.