Vyyo Raises $35M from Goldman Sachs3/28/2007 3:58 AM Eastern
Vyyo received a $35 million funding commitment from existing investor Goldman Sachs, which the broadband-equipment provider hopes will help to fuel its growth.
The transaction, which Vyyo said will be closed within the week, will provide $17.5 million in new funding and another $17.5 million to pay off notes issued to Goldman Sachs last year.
Vyyo said it will use the funding to "accelerate deployment" of its spectrum-overlay and business-services solutions for the cable industry.
The funding news follows Vyyo's announcement Monday that it recruited two longtime cable-technology executives: Wayne Davis joined as CEO and Jim Chiddix was named vice chairman.
The $35 million consists of a five-year unsecured note convertible into Vyyo common stock at $10 per share, a 34% premium over the closing price of Vyyo's stock March 27. The convertible note will bear a 5% annual interest rate.