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Pivotal Systems advised on ‘novel’ financing structure
US-based tech company Pivotal Systems Corporation has been advised on the raising of $13 million under a preferred stock financing facility.
Jerome Doraisamy
Firm: Maddocks (Pivotal Systems).
Under the deal, private equity firm Anzu Industrial RBI USA LLC will subscribe for preferred stock with repayment being linked to a percentage of Pivotal System’s ongoing revenue.
Area: Corporate.
Value: $13 million.
Key players: The Maddocks team on the matter was partner Catherine Merity and special counsel Rosa Sayer.
Deal significance: According to the firm, the preferred stock financing facility structure “provides an alternative to traditional debt or equity funding, providing more flexibility for growth stage companies which may have inconsistent revenue streams”.
“The preferred stock is not convertible into ordinary equity and therefore does not dilute existing shareholders and does not contain financial covenants thereby providing more flexibility than customary debt financing,” it added.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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