Bell Industries, Inc. (fka BLLI)

[badman]

In connection with closing the SkyTel sale, Bell agreed to an amendment to the terms of its $11.1 million convertible note payable to Newcastle Partners, one of the company’s secured lenders.

The amendment reduces the conversion price of the note to 20 cents per share from $3.81 and lowers the interest rate on the note to four percent from eight. The company is required to seek shareholder approval of an amendment to its articles of incorporation to increase its authorized common shares to allow for full conversion of the note. If such approval is obtained, the Newcastle note will be convertible into shares representing an approximate 87 percent ownership in Bell. The company also has a limited prepayment right to prepay the entire amended note within 90 days of issue.