For Immediate Release
Contact: Maria D. Velazquez
Marketing Director
Carter Ledyard & Milburn LLP
velazquez@clm.com
CIDCO
INCORPORATED CLOSES $150 MILLION FINANCING
The World's Leading
Producer of "Intelligent Network" Telephone Equipment To Expand
Globally
NEW YORK, NY-July 8, 1996 -- CIDCO Incorporated, the world's leading producer
of subscriber terminal equipment that supports network services being offered by
telephone companies, announced that Forstmann Little & Co has invested $150
million of growth capital into the company.
James E. Abbott, a partner at Carter, Ledyard & Milburn, attorneys for
CIDCO, said "This deal represents an opportunity for CIDCO to continue its
growth through the aggressive pursuit of opportunities in the emerging global
telecommunications marketplace."
The Forstmann Little investment took the form of newly issued Subordinated
Convertible Notes, convertible into approximately 19% of CIDCO's currently
outstanding common stock. The convertible debt has a 7-year term and carries an
interest rate of 3.75%. It is noncallable for five years and is convertible into
CIDCO common stock at a price of $41 per share. Upon conversion of the debt into
common stock, Forstmann Little would become CIDCO's largest shareholder. In
connection with the transaction, Theodore J. Forstmann has joined CIDCO's board
of directors. CIDCO and Forstmann Little executed a Note Purchase Agreement on
Friday, June 7th, and closed this investment transaction on Friday, June 28,
1996.
CIDCO Incorporated was represented by partners James
E. Abbott, Steven J. Glusband and
associates, Richard G. Pierson, David
M. McDonald, Stanley D. Baum, Steven Sibol and Cassandra D. Williams of
Carter, Ledyard & Milburn. Forstmann Little was represented by partners,
Aviva Diamant, F. William Reindel, Joel Scharfstein and associate, Michael
Krawitz of Fried, Frank, Harris, Shriver & Jacobson.
Carter, Ledyard & Milburn is an 85 attorney firm with a
practice encompassing corporate, tax,
real estate, bankruptcy,
trusts
and estates, environmental,
international and litigation
matters. The firm is located on Wall Street, with a branch office in Washington,
DC.
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