NEW YORK, Oct. 8, 2020 /PRNewswire/ -- Brightstar Capital Partners ("BCP"), a private equity firm focused on partnering with founders, entrepreneurs and management teams, today announced that Brightstar Escrow Corp. (the "Issuer"), controlled by affiliates of BCP, has priced a private offering of $420 million aggregate principal amount of 9.75% Senior Secured Notes due 2025 (the "Notes"). The Notes are being offered in connection with BCP's previously announced acquisition (the "Acquisition") of a majority of the equity interests of Brightstar Global Group, Inc., the parent company of Brightstar Corp. (the "Company"). An affiliate of SoftBank Group Corp., the Company's current majority owner, will retain a minority stake in the Company. The offering of the Notes is expected to close on or about October 15, 2020, subject to customary closing conditions.
BCP and the Company intend to use the proceeds from the offering, together with borrowings under an asset-backed credit facility (the "ABL Facility") and the proceeds from a cash equity contribution by BCP, to finance and consummate the Acquisition, repay certain of the Company's existing credit facilities and pay fees and expenses incurred in connection with such transactions. BCP and the Company intend to use any remaining proceeds for general corporate purposes.
Upon the closing of the Acquisition, the Issuer will merge with and into the Company, with the Company assuming the obligations of the Issuer under the Notes and the related indenture.
The Notes and related guarantees are being offered to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The Notes and related guarantees have not been and will not be registered under the Securities Act or any state or other jurisdiction's securities laws. Accordingly, the Notes and related guarantees may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act and any applicable state or other jurisdiction's securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on partnering with exceptional founders, entrepreneurs and management teams where the firm is ideally positioned to drive value creation. Brightstar employs an operationally intensive approach that leverages its extensive experience and relationship network to help companies reach their full potential.
About Brightstar Corp.
Brightstar Corp. simplifies the wireless world, making mobile technology accessible to everyone. The Company is a global leader of end-to-end device lifecycle management solutions. The Company works with carrier, retail and enterprise customers in approximately 60 countries, touching every stage of a device's lifecycle, from when it's manufactured to the moment it's time to trade it in and re-market it.
This release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements include, without limitation, statements regarding the Notes offering, the use of proceeds therefrom and the Acquisition and other statements, which are not statements of historical facts. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially from the results expressed or implied by the forward-looking statements, such as the risk that the offering of the Notes may not be completed in a timely manner or at all; risks and uncertainties related to the Acquisition, including, but not limited to, the risk that the Acquisition will not occur within the expected timeframe, or at all; or failure of the parties to satisfy conditions to completion of the Acquisition. This list is not exhaustive. Except as required by law, we assume no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations.
SOURCE Brightstar Capital Partners