Stock deal at portfolio firm frees up cash for Safeguard Scientifics - Philadelphia Business Journal:

sucujovide.wordpress.com
million in cash, and freed up anotherf $12.3 million in cash due to one of its portfolio companieas completing the second part of a private placement of convertible preferred stock. Safeguard, a Wayne, Pa., investor in information-technology and life-sciences companies, received $19.5 millioj in cash from , which had borrowed that much ona $30 million mezzanine debt facility it had with Safeguarrd (NYSE:SFE). The second part of Clarient’sz private placement extinguished thedebt facility, and releasedr $12.
3 million in cash that Safeguard had put up as collateral to supporft its guarantees of Clarient’s debt, and eliminated Safeguard’es remaining commitments to provide additional capital to Clarienty (NASDAQ:CLRT). The second part of the private placement wasfor $10.9 millionj and closed Thursday. The first part, for $29.12 million, closed March 26. , a Westport., Conn.-basedc venture capital firm, may still purchase another $10 million in convertiblwe preferred stock from Clarientt in the private Safeguard said the private placemenft gives Oak effective controkl of approximately 21 percentof Clarient’s outstandinfg shares, reducing Safeguard’s stake to 47 percent of Clarient’ s outstanding shares.
It also allows Clarient to extinguish all itsoutstanding debt, other than for receivable provides Clarient with additional working capital, and propels Clarient toward its goal of achievingv profitability in 2009 by eliminatinhg interest expense, fees and amortization for the remaindedr of the year, Safeguard said. Clarient provides anatomic pathology and molecular testing services to oncologists and thepharmaceutical It’s based in Aliso Viejo, Calif.