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 • 06 February 2020 • SME Law

Firm: Maddocks (Pivotal Systems).

You’re out of free articles for this month

Username or Email

Password Forgot password?

Keep me signed in on this device.

First Name

Last Name

Mobile

Organisation Type

By becoming a member, I agree to receive information and promotional messages from Lawyers Weekly. I can opt out of these communications at any time. For more information, please visit our Privacy Statement.

Need help signing up? Visit the Help Centre.

Deal: Pivotal Systems has raised $13 million under a preferred stock financing facility, “which is new to the Australian market”, Maddocks said in a statement.
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.

VIEW ALL

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 managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.

You can email Jerome at: This email address is being protected from spambots. You need JavaScript enabled to view it.

You need to be a member to post comments. Become a member for free today!

Lawyers Weekly - legal news for Australian lawyers

SECTIONS

MORE

Pivotal Systems advised on ‘novel’ financing structure

Jerome Doraisamy

OUR PLATFORMS AND BRANDS

EVENTS AND SUMMITS

PODCASTS

LEARNING AND EDUCATION

MOMENTUM MARKETS NETWORK

LINKS

STAY CONNECTED