Next Level Communications (NASDAQ:NXTV), a developer of integrated multimedia broadband access systems for telecom service providers, announced it has signed a $60 million loan agreement with Motorola Inc. (NYSE:MOT).
Under the terms of the agreement, Motorola, which currently owns 77 percent of the company, will make a $60 million loan commitment to Next Level over a two-year period, beginning May 2001. Motorola will receive a pro rata portion of warrants to purchase four and one-half million shares of Next Level common stock with each draw down of the loan. If any of the loan is still outstanding in 12, 18 or 21 months from May 17, 2001, Motorola will receive an additional three million warrants in one million increments at each of those dates. The warrants will be exercisable for five years at a price of $7.39 per share.
About Next Level:
Next Level Communications is a developer of integrated multimedia broadband access systems from central office equipment to customer premise equipment for the delivery of voice, high-speed data and digital video services for telecom service providers. For more information, visit www.nlc.com.