Comtech Announces Strategic Growth Investment By White Hat And Magnetar - Quick Facts

(RTTNews) - Comtech Telecommunications Corp. (CMTL) announced a $100.0 million investment by current shareholder White Hat Capital Partners LP and Magnetar Capital. White Hat and Magnetar will initially purchase $100.0 million of convertible preferred stock, which will be convertible into shares of Comtech common stock at a conversion price of $24.50 per share. The preferred stock carries a 6.5% dividend, which will be payable in kind or in cash at the company's election.

Until March 31, 2023, White Hat and Magnetar will have a one-time right to purchase up to an additional $25.0 million of convertible preferred stock, which will be convertible into shares of Comtech common stock at a conversion price of $32.00 per share.

Also, Comtech, White Hat and Magnetar have agreed to appoint Mark Quinlan to the company's Board in conjunction with the previously announced CEO succession. Quinlan is White Hat's Co-Founder and Managing Partner.