Quantum Technologies Repays Subordinated Bridge Notes in Full
LAKE FOREST, CA--Sept. 23, 2013: Quantum Fuel Systems Technologies Worldwide, Inc. , a global leader in natural gas storage systems, integration and vehicle system technologies, announced today that it used a portion of the proceeds from its recent financing transaction of $11.0 million in convertible notes to repay the entire outstanding principal and accrued interest balances associated with unsecured nonconvertible promissory bridge notes that originated in June and July 2012 (the "Bridge Debt"). The total amount paid in cash to retire the Bridge Debt was approximately $7.3 million, of which $0.2 million represented accrued interest.
The Bridge Notes were unsecured obligations of the Company and were subordinate in all respects to the Company's senior secured indebtedness. Interest had been accruing at a rate of 12% per year and was payable quarterly in arrears on October 1, January 1, April 1 and July 1. The Bridge Notes were scheduled to mature fifteen months following the dates of issuance beginning on September 22, 2013 but the Company had the right to prepay, in whole or in part, at any time without penalty.
"The replacement of the maturing Bridge Notes with the long-term 2% convertible notes that we recently announced has strengthened our financial position," stated Brad Timon, Chief Financial Officer of Quantum. Mr. Timon continued, "We are pleased that we were able to retire the Bridge Debt in a cost-effective manner."