This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Overland Storage Gets Extension on Revolver

NEW YORK ( The Deal) -- Overland Storage (OVRL) has extended the maturity date of its $8 million revolving credit facility into 2015 as it continues to evaluate a merger idea involving another data storage provider proposed by a distressed-debt fund manager.

With more time to access its revolver, the San Diego-based Overland Storage is getting ready to announce its fiscal 2013 fourth-quarter and full-year results on Sept. 4.

In May, the data protection and management company received a proposal from New York-based distressed-debt fund manager Cyrus Capital Partners to combine it with Tandberg Data (Holdings) Sarl, a Dortmund, Germany-based data storage and data protection company owned by Cyrus Capital that had $67 million in revenue in 2012.

Overland Storage has been evaluating the proposal with the help of financial adviser Al Longfield at Roth Capital Partners. Longfield declined to comment.

Meanwhile, Overland Storage received an extension on its $8 million revolving credit facility with Silicon Valley Bank to Aug. 7, 2015. The revolver had been set to come due on Aug. 8.

The Aug. 8 amendment to the revolver added a new $750,000 credit line for letters of credit, filings with the Securities and Exchange Commission said.

The company has $3.5 million outstanding on the revolver and a $4.2 million borrowing capacity. The debt is priced at prime plus 100 basis points to 125 basis points.

Overland Storage also has $13.25 million in 8% convertible promissory notes due Feb. 13, 2017. The notes are secured by 65% of the company's stock in each of its foreign subsidiaries, including Overland Storage (Europe) Ltd., Overland Storage Sarl and Overland Storage GmbH. The notes are convertible into the company's common stock at an initial conversion price of $1.30 per share.

Cyrus Capital's proposal is a "merger of equals" that would leave Overland's shareholders owning half of the company and Tandberg Data's shareholders owning half. In addition, Overland Storage's shareholders may receive cash for a portion of their shares in the company.

Cyrus Capital, which holds a portion of Overland Storage's promissory notes, sent a letter to the company laying out the potential synergies of a merger, including substantial cost efficiencies to facilitate profitability and cash generation; complementary channels and routes-to-market; and a common target market, similar business users, and complementary customer base, among other things.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
OVRL $3.48 -7.93%
AAPL $94.27 -0.76%
FB $101.00 1.47%
GOOG $684.12 0.89%
TSLA $143.67 -3.09%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs