TiVo closes $51.8M private placement
TiVo Inc. closed a terms-heavy private placement of $51.75 million of convertible debt and warrants to accredited investors, it says.
The deal includes the $51.75 million in convertible senior notes at a 7 percent interest rate, due in 2006. TiVo says the notes are convertible at any time for common stock at $6.73 a share.
A spokeswoman did not return calls by CEDaily deadline. The company's statement did not say who the investors were nor what it intends to do with the funds.
The warrants allow investors an option to buy about 2.5 million more shares at $7.85 a share with a five-year limit. Two other sets of warrants in the deal allow investors to buy about 3.8 million more shares of its common stock at $6.73 a share, within one year, unless the offer is terminated earlier, TiVo says. The company estimates the one-year warrants could draw an additional $25.9 million in cash during the year.
The other set, with a five-year expiration date, offers about 1.3 million more shares of common stock at $7.85 a share. The five-year offer only kicks in after the one-year offer is exercised.
TiVo also says the conversion price is subject to change, depending on circumstances.
TiVo affirmed its guidance last month, stating it expected revenue in the $63 million to $72 million range for its fiscal year ending January 2003, or about three times the anticipated revenue of $20 million to $24 million ending January 2002. Nonsubscription revenue would run about 30 percent to 40 percent of that, including the technology licensing and ITV advertising revenue, it said then.
TiVo also expected operating losses of $145 million to $155 million for FY 2002 and $96 million to $108 million in 2003.