Southwall Technologies Inc., a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, announced 25 February 2004 that…
Southwall Technologies Inc., a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, announced 25 February 2004 that it has raised USD 4.5 million in convertible debt funding under an amended and restated agreement with a group of investors led by Needham Capital Partners. At the option of investors, the secured convertible debt can be converted into 4,500,000 shares of preferred stock. Other terms remain generally unchanged as the total bank guarantee and secured debt financing package provides up to USD 7.5 million in funding for Southwall. As a condition to receiving funding under the 18 December 2003 agreement, Southwall had to reach satisfactory agreements with its major creditors. Under the terms of the revised creditor agreements Southwall restructured its payment obligations, which is expected to result in a cash outlay reduction of over USD 6 million in 2004. “We are very pleased to have secured additional funding and reached agreements with several of our largest creditors,” said Thomas G. Hood, Southwall“s president and chief executive officer. “The restructuring of these financial obligations with our creditors is expected to substantially improve Southwall“s cash situation and is an indication of the significant progress we are making in putting Southwall back on solid financial ground. These agreements, along with the financial benefits from our workforce reduction and consolidation of our U.S. operations, should allow the company to successfully rebuild in 2004.” A complete description of the amended investment agreement, can be found on Southwall“s Form 8-K which was due to be filed with the Securities and Exchange Commission on 25 February 2004. ISO 9001:2000-certified manufacturer and exporter Southwall Technologies Inc. designs and produces thin film coatings that selectively absorb, reflect or transmit light. The company“s products are used in a number of automotive, electronic display and architectural glass products to improve optical and thermal performance characteristics, enhance user comfort and reduce energy costs.