ViSalus and Other Preferred Shareholders Now Own Approximately 90% of ViSalusTransaction Extinguished 2017 Redemption Obligation
Blyth, Inc. today announced that it and the Founders and certain other preferred stockholders of its ViSalus network marketing subsidiary have completed the exchange of all of the Redeemable Convertible Preferred Stock of ViSalus for shares of ViSalus Common Stock.
On September 2, 2014, Blyth had announced that it and ViSalus’s Founders had reached an agreement in principle to effect the exchange which reduced Blyth’s ownership interest in ViSalus from 80.9% to approximately 10%, and increased ViSalus’s Founders and its other preferred stockholders ownership from 19.1% to approximately 90%.
In addition, the transaction extinguished the obligation of ViSalus to redeem the ViSalus Redeemable Convertible Preferred Stock on December 31, 2017 for an aggregate price of $143.2 million which obligation had been guaranteed by Blyth.
In connection with this transaction, Blyth amended the indenture governing its 6.00% Senior Notes due 2017 to provide for the mandatory redemption of the Senior Notes on the earlier of March 4, 2015 and the date, if any, that Blyth consummates a new financing. Cowen and Company, LLC acted as exclusive financial advisor to Blyth in connection with such amendment.
In addition, as a