Lender banks agree to restructure outstanding bank debt.
Nur Macroprinters Ltd. has reached an agreement with Israel-based Fortissimo Capital Fund to invest $12 million in Nur. A private equity fund investing in public and private technology companies, Fortissimo Capital reports that it is backed by 15 financial institutions including insurance companies, banks, and pension funds.
Nur also announced that it, Fortissimo, and Nur's three lender banks have entered into definitive agreements. The banks have 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.
"During the past few weeks, we have conducted discussions with several potential investors," says David Amir, Nur president and CEO. "We felt that Fortissimo's offer is in the best interests of our company, as it addresses the company's current financial needs, as well as the interests of our shareholders and those of the lender banks. With the completion of these transactions, we expect to achieve the financial stability needed to pursue our technological and business goals."
Upon closing of the investment, Fortissimo will be entitled to elect a majority of the members of Nur's board of directors; it's expected that the board will consist of seven directors, four of which will be elected by Fortissimo. Yuval Cohen, Fortissimo's managing partner, is expected to be appointed as chairman of Nur's board of directors.
"Now that Nur's financial situation is under control," says Cohen, "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." (Nur: www.nur.com, Fortissimo Capital: www.ffcapital.com)