Mindspeed Seeks to Raise $32MTuesday, June 12, 2012
Newport Beach-based networking chipmaker Mindspeed Technologies Inc. plans to raise $32 million through the sale of convertible senior notes, according to a Tuesday regulatory filing.
Mindspeed entered the loan agreement with Silicon Valley Bank. Raymond James & Associates will issue and sell the notes.
Investors seized upon the filing, sending Mindspeed shares down 3.3 % in early afternoon trading to a market value of about $120 million.
The move to shore up cash comes as the company recently downsized its corporate headquarters and cut staffing by 25 employees, as part of restructuring following its January acquisition of U.K.-based Picochip Ltd. for $51.8 million and up to $25 million in additional benchmark payments.
Mindspeed makes chips for routers, switches and other networking gear.
The company in April renewed its lease with New York-based landlord Emmes Group of Cos. for 88,160 square feet to run through the end of 2019, according to regulatory filings. It had occupied about 97,000 square feet at the complex, which includes a pair of 10-story buildings near MacArthur Boulevard and Jamboree Road near John Wayne Airport.
Mindspeed took a $1.2 million restructuring charge in the recently ended quarter for severance costs.
The company is undergoing a strategic shift to develop complete solutions for manufacturers and infrastructure, evident in its recent partnership with Hong Kong-based China Mobile Ltd., the world’s largest wireless carrier.
Mindspeed will support the company’s aggressive expansion plan to deploy thousands of small base stations across the country to improve China’s taxed communications infrastructure.