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Hypercom Corp. Reports Operating Results (10-K/A)
Posted by: gurufocus (IP Logged)
Date: December 1, 2010 04:35PM
Hypercom Corp. (HYC) filed Amended Annual Report for the period ended 2009-12-31. Hypercom Corp. has a market cap of $408.6 million; its shares were traded at around $7.4 with a P/E ratio of 26.4 and P/S ratio of 1.HYC is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
Highlight of Business Operations:
In connection with our acquisition of the Thales e-Transactions line of business, which was completed in April 2008 (the “Acquisition”), Hypercom and Francisco Partners II, L.P. (“FP II”) entered into a credit agreement (the “Credit Agreement”) pursuant to which FP Hypercom Holdco, LLC, an affiliate of FP II (the “Holder”), loaned Hypercom $60 million to partially fund the Acquisition at the closing of the Acquisition. The loan under the Credit Agreement bears interest at 10% per annum, provided that, at Hypercom s election, interest may be capitalized and added to the principal of the loan to be repaid at maturity. All amounts outstanding under the Credit Agreement are due four years from the funding date (April 1, 2008). In connection therewith, we granted the Holder a five-year warrant to purchase 10,544,000 shares of Hypercom common stock at $5.00 per share (the “Warrant”) and entered into a Registration Rights Agreement with the Holder pursuant to which Hypercom agreed to register for resale the shares of Hypercom common stock issuable upon exercise of the Warrant (the “Registration Rights Agreement”).
Mr. Geeslin, as a member and manager of the ultimate general partner of FP II, had an indirect interest in the transactions arising from the Credit Agreement for Fiscal 2009 that was considered an Interested Transaction under our Related Party Transaction Policy and which remains an ongoing Interested Transaction while amounts are outstanding under the loan. For Fiscal 2009, the largest aggregate amount of principal outstanding under the Credit Agreement (including capitalized interest) was $74.3 million. The amount of principal outstanding under the Credit Agreement (including capitalized interest) as of March 31, 2010 was $73.0 million. All interest payable on the loan was capitalized and added to principal, at Hypercom s election, in Fiscal 2009 and through March 31, 2010. The aggregate amount of principal repayments made by Hypercom to FP II in Fiscal 2009 and through March 31, 2010 was $3.0 million. The approximate dollar value of the amount of Mr. Geeslin s interest in the Interested Transaction for Fiscal 2009 was $125,000.
Stocks Discussed: HYC,