Fortissimo invests $12m in NUR Macroprinters
Fortissimo Capital and NUR's three lender banks to restructure Nur's outstanding bank debt.
Globes correspondent 13 Sep 05 09:58
Nur Macroprinters (Nasdaq: NURM), supplier of wide-format inkjet production printing systems for the out-of-home advertising market, announced that it has reached a definitive agreement with Fortissimo Capital Fund to invest $12 million in Nur.
Nur also announced that it, Fortissimo and Nur's three lender banks -- Bank Hapoalim (LSE: BKHD; TASE: POLI), Bank Leumi (TASE: LUMI), and Israel Discount Bank (TASE: DSCT) -- entered into definitive agreements to restructure Nur's outstanding bank debt.
The banks agreed to convert $14 million of Nur's outstanding debt into warrants to purchase ordinary shares, to convert $5 million into a non-interest bearing 3-year subordinated note, repayment of $2 million of the debt within 1 year and replacement of the remaining $22 million with new credit facilities. The credit facility will be divided into a revolving short-term credit line in the amount of $11 million for a 6-year period, and a long-term loan in the amount of $11 million for a 10-year period. Nur will not be required to make any principal payments under the new long term loan for a period of two years, and will have the option to repay the long-term loan after six years from the inception date of the new credit facility.
The Fortissimo investment and the agreement with Nur's lender banks have been approved by Nur's board of directors. Nur expects to schedule an October shareholders meeting to approve the deal.
Nur Macroprinters president and CEO David Amir said, "During the past few weeks, we have conducted discussions with several potential investors. We felt that Fortissimo's offer is in the best interests of our company, as it addresses our current financial needs, as well as the interests of the shareholders and the lender banks. With the completion of these transactions, we expect to achieve the financial stability needed to pursue our technological and business goals."
Fortissimo managing partner Yuval Cohen said, "Now that Nur's financial situation is under control, we will be able to focus the company on growing its business by increasing sales and marketing activities, releasing new and innovative products and solutions and enhancing customer service and support. We strongly believe that Nur's technology, product offering and multinational presence serve as a unique platform upon which to build and enhance Nur's position as a leading manufacturer of wide and super wide format digital printing systems."
Fortissimo's investment will be made in three installments. The first installment of $5 million will be made on, and as a condition to, the closing of the Fortissimo investment; the second installment of $5 million will be made within 90 days of the closing of the Fortissimo investment; and the final $2 million installment will be made on the first anniversary of the closing of the Fortissimo investment and will be used to reduce Nur's outstanding principal of outstanding bank debt by $2 million pursuant to the agreement reached with NUR's lender banks.
Nur will issue to Fortissimo approximately 34.3 million ordinary shares at $0.35 per share and 5-year warrants to purchase up to 25.7 million ordinary shares at an exercise price of $0.40 per share.
Upon closing of the first installment of the investment, Fortissimo will be entitled to elect a majority (four out of seven) of Nur's board of directors. Cohen is expected to be appointed chairman.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, September 13, 2005