Conexant Systems Inc. (CNXT) has recently announced the filing of a universal shelf registration statement with the Securities and Exchange Commission (SEC). Once the shelf registration statement gets declared, Conexant will have the option to offer and sell up to $100 million of common stock, preferred stock and debt securities.
The company intends to use the net proceeds from the sale of securities under the shelf registration statement for general corporate purposes, which includes the repaying, redeeming or repurchasing existing debt, and also for working capital requirements, capital expenditures and acquisitions.
In December, Conexant completed the redemption of $61.4 million of outstanding aggregate principal amount of its floating rate senior secured notes due in November 2010. The total aggregate redemption amount paid was $62.3 million, including accrued interest. The company funded the redemption with cash on hand. Earlier, the company retired an aggregate amount of $80 million of its senior secured notes due in November 2010.
Conexant also entered into a new credit facility of $15 million through November 30, 2010, with Silicon Valley Bank. The company had earlier raised $21.2 million by offering 8,050,000 shares to the public.
Management undertook significant restructuring activities to transform the business into a smaller but profitable enterprise. In August 2009, the company divested its Broadband Access Product lines. The company also terminated new investments in wireless networking and divested its Broadband Media Processing business. Management will now target acquisitions to strengthen its product portfolio.
Headquartered in Newport Beach, California, Conexant Systems designs and develops semiconductor solutions that enable consumers to access the digital world.
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