Broadcast International Raises $15 Million

Vendor also restructures and reduces debt
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Broadcast International has raised $15 million in equity financing and restructured $18.8 million in convertible debt. The provider of video broadcasting solutions raised $15 million through Philadelphia Brokerage Corporation, which sold 12.5 million units-with each unit consisting of two shares of common stock and one warrant to purchase an addition share of common stock-for $1.20 a unit.

Broadcast International also substantially reduced its aggregate indebtedness by restructuring $17.8 million in principal and capitalized interest that would have been due later this month. As part of the restructuring the senior lender received $5.25 million cash from the equity raised and an amended 6.25% senior convertible note of $5.5 million that will be due in December of 2013. The lender forgave about $7 million existing debt.

In addition, a junior lender holding an 8% convertible $1 million note due January 1, 2011 agreed extended that note until December 2013.

"We are extremely pleased to have secured this additional equity and to have restructured our debt," noted Rod Tiede, president and CEO of Broadcast International in a statement. "We are now in a position of much greater strength to aggressively market the groundbreaking technology within the CodecSys software platform."

Tiede also noted that the company is expecting to double its digital signage revenues and to become cash flow positive in 2011, when he is expecting revenue to exceed $25 million.

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