The initial prospectus submitted by Verint (formerly Comverse Infosys) to the Securities and Exchange Commission reveals that some of the money raised on the Nasdaq will repay a $42 million bank loan. The company is planning to raise $75 million according to $200 million to $300 million company value.
Prior to the issue, planned for two months from now, Comverse completed the asset and liabilities allocation to digital recording developer Verint. Comverse is the guarantor for Verint's current loan, which the company must repay by February 2003 at libor + 0.55% interest. The loan terms seem relatively convenient, as the loan may be redeemed anytime, free of fines.
Verint took a bank loan in place of the loan from Comverse Technology (Nasdaq:CMVT), which charged it interest of $1.4 million in 1999, $2.1 million in 2000 and $1.3 million in the first nine months of 2001, altogether $4.8 million on interest. Verint was not available for comment today.
Prior to taking the loan in January 2002, the company had $2.2 million in debt at the end of the first nine months of the fiscal year. Its long-term and short-term commitments today total $95 million. The prospectus also reveals that in the end of January 2002 Verint had $43.3 million in its till. Of that money the company paid $9.5 million to acquire US firm Lanex, an acquisition completed this month. The prospectus further reveals Verint ended 2001 with $1.5 million cash flow from activity. The company had accumulated a deficit of $44 million by the end of Q3.