Navarre Gets $20M Private Funding21 Mar, 2006 By: Erik Gruenwedel
Navarre Corp. March 21 announced the completion of a $19.9 million private placement with private investors.
The Minneapolis-based home entertainment distributor's deal included 5.7 million shares of common stock at $3.50 per share and 1.4 million five-year common stock warrants at $5 per share.
Navarre said it would use the funds to pay off a $25 million term loan from General Electric Capital Corp., which carried an annual interest rate exceeding 5.75%.
Navarre chairman and CEO Eric Paulson said the private placement eliminated high interest debt and helped to “de-leverage the company.”
“We are optimistic about our upcoming fiscal year 2007 and completion of this private placement reflects market confidence in our future,” Paulson said.
Earlier this year, Navarre said it would take a $12.8 million hit following the bankruptcy of Musicland Holding Corp.