Sirenza in Discussions to Acquire Vari-L
Sirenza Microdevices Inc. (Sunnyvale, CA) announced that it is in discussions to acquire Vari-L Company Inc. (Denver, CO). Concurrently, Sirenza has agreed to provide Vari-L with a secured bridge loan facility of up to $5.3 million. In connection with the loan agreement, Vari-L has agreed to negotiate a potential acquisition exclusively with Sirenza through March 2003, subject to limited exceptions, and has granted Sirenza the right of first refusal on competing acquisition offers.
Under the terms of the secured bridge loan facility, Vari-L plans to draw $1.3 million to retire a current loan facility. Vari-L may draw additional funds from time to time to support its general working capital requirements. The Sirenza loan facility provides for a portion of the principal amounts to be convertible into approximately 19.9 percent of Vari-L's fully diluted common stock under certain conditions.