10:46 AM EDT, 07/01/2024 (MT Newswires) -- Inseego ( INSG ) said Monday it signed a series of agreements to manage its capital structure by reducing total debt and restructuring its outstanding 3.25% convertible notes due 2025.

The company's three largest noteholders, representing over $125 million of the outstanding 2025 notes, agreed to sell or exchange their holdings for cash, long-term debt, and equity at a 30% discount.

Inseego ( INSG ) said it agreed to purchase all of the $45.9 million in face value of the 2025 notes held by Highbridge Capital Management for $32.1 million in cash and to borrow $19.5 million from South Ocean Funding and other lenders to finance part of this repurchase.

Additionally, Inseego ( INSG ) will exchange $80 million of the 2025 Notes held by North Sound Partners and Golden Harbor for new long-term debt and equity. The new long-term notes will mature on May 1, 2029.

Inseego ( INSG ) said that after these transactions, slated to close later this year, its total debt is expected to be reduced to $84.3 million, with approximately $33 million of the 2025 Notes remaining.

Shares of Inseego ( INSG ) rose 7.8% in recent trading.

Price: 11.55, Change: +0.89, Percent Change: +8.35