CEVA Group Plc (“CEVA” or the “Company”) announced today that in connection with its previously announced private offer to exchange (the “Exchange Offer”) and consent solicitation (the “Consent Solicitation”) made pursuant to the confidential Offering Memorandum and Consent Solicitation Statement dated March 8, 2017 (the “Offering Memorandum”), it has received tenders and consents as of 5:00 p.m., New York City time, on March 29, 2017, of an aggregate principal amount of $350,449,633 of its 4.00% First Lien Senior Secured Notes due 2018 (the “Existing Notes”), representing approximately 89.9% of the aggregate principal amount of the Existing Notes. In addition, the Company announced that it has amended the terms and conditions of the Exchange Offer to change the minimum aggregate principal amount of Existing Notes that must be validly tendered and accepted by CEVA in the Exchange Offer to $350,449,633 aggregate principal amount, which has been met.
Pursuant to the terms of the Exchange Offer, eligible holders who validly tendered and did not validly withdraw their Existing Notes and their consents on or prior to 5:00 p.m., New York City time, on March 28, 2017 (the “Consent Time”) will receive total consideration of $1,025 principal amount of CEVA’s new 9.00% First Lien Senior Secured Notes due 2020 (the “New Notes”) per $1,000 principal amount of Existing Notes tendered. Eligible holders who validly tender their Existing Notes after the Consent Time but at or prior to the Expiration Time (as defined below) will receive exchange consideration of $1,000 principal amount of New Notes per $1,000 principal amount of Existing Notes tendered. Eligible holders of Existing Notes accepted for exchange will also receive a cash payment equal to the accrued and unpaid interest in respect of such Existing Notes from the applicable most recent interest payment date to, but not including, the closing date of the Exchange Offer. An eligible holder’s right to validly withdraw tendered Existing Notes and validly delivered consents expired at the Consent Time. Accordingly, all Existing Notes that have been or will be tendered in the Exchange Offer may no longer be withdrawn.
As previously announced, the Exchange Offer is scheduled to expire at 11:59 p.m., New York City time, on April 4, 2017, unless extended or earlier terminated (such time and date, as it may be extended, the “Expiration Time”). Eligible holders may tender their Existing Notes until the Expiration Time. It is expected that the closing of the Exchange Offer will be on or about April 7, 2017, which is the third business day following the Expiration Time, or as soon as practicable thereafter. Except as set forth herein, the complete terms and conditions of the Exchange Offer and the Consent Solicitation remain the same as set forth in the Offering Memorandum.
Based on the tenders and consents received as of the Consent Time, the Company has received the requisite majority consent necessary for the adoption of the proposed amendments (the “Proposed Amendments”) to the indenture governing the Existing Notes (the “Existing Notes Indenture”), which will (i) eliminate substantially all of the restrictive covenants and certain events of default and related provisions contained therein and (ii) release the collateral securing the Existing Notes. In conjunction with receiving the requisite majority consent, the Company and Wilmington Trust, National Association, as trustee, registrar, paying agent, transfer agent and collateral agent, will promptly execute the supplemental indenture with respect to the Existing Notes Indenture implementing the Proposed Amendments (the “Supplemental Indenture”). The Supplemental Indenture will become effective upon execution, but the Proposed Amendments will not become operative until the closing of the Exchange Offer. Thereafter, eligible holders of Existing Notes not validly tendered in the Exchange Offer that remain outstanding will be bound by the Proposed Amendments contained in the Supplemental Indenture even though they have not consented to the Proposed Amendments.
CEVA has the right to amend, terminate or withdraw the Exchange Offer and Consent Solicitation, at any time and for any reason, including if any of the conditions to the Exchange Offer are not satisfied.
Neither CEVA nor any other person makes any recommendation as to whether eligible holders should tender their Existing Notes in the Exchange Offer or provide the consent to the Proposed Amendments to the indenture governing the Existing Notes in the Consent Solicitation, and no one has been authorized to make such a recommendation. Eligible holders of the Existing Notes should read carefully the Offering Memorandum before making an investment decision to participate in the Exchange Offer. In addition, eligible holders must make their own decisions as to whether to tender their Existing Notes in the Exchange Offer and if they so decide, the principal amount of the Existing Notes to tender.
The New Notes being offered in the Exchange Offer have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
The Exchange Offer is being made, and the New Notes are being offered and issued only (i) in the United States, to holders of Existing Notes who are “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) or institutional “accredited investors” within the meaning of Rule 501 (a)(1), (2), (3) or (7) of Regulation D under the Securities Act and (ii) outside the United States, to holders of Existing Notes who (A) are not “U.S. persons” (as defined in Rule 902 under the Securities Act) and (B) are also “non-U.S. qualified offerees” (as defined in the letter of eligibility), in reliance on Regulation S of the Securities Act. The Exchange Offer is made only by, and pursuant to, the terms set forth in the Offering Memorandum. The Exchange Offer is subject to certain significant conditions. The complete terms and conditions of the Exchange Offer are set forth in the Offering Memorandum and the other documents relating to the Exchange Offer which have been distributed to eligible holders of the Existing Notes.
Documents relating to the Exchange Offer, including the Offering Memorandum, will only be distributed to holders of Existing Notes who complete and return a letter of eligibility confirming that they are within the category of eligible holders for the Exchange Offer. Holders of Existing Notes who desire a copy of the eligibility letter should visit www.dfking.com/ceva or contact D.F. King & Co., Inc., the information and exchange agent for the Exchange Offer, located in New York, at +1 (800) 628-8532 or +1 (212) 269-5550 or ceva@dfking.com.
