SoftBrands raises $18 million
SOFTBRANDS ISSUES $18,000,000 OF CONVERTIBLE PREFERRED STOCK
Minneapolis – Aug. 18, 2005 - SoftBrands, Inc. (OTC: SFBD), a global supplier of enterprise application software, announced today that it closed late Wednesday on the sale of 18,000 shares of 6% Convertible Preferred Stock and warrants to purchase 1,200,000 shares of common stock for a purchase price of $18 million. ABRY Partners, a private equity firm, purchased $15 million of the preferred stock and warrants, and Capital Resource Partners (CRP), an existing investor, purchased the balance. Each share of Convertible Preferred Stock pays a dividend of 6% of its $1,000 face value, is convertible at an effective price of $2.01 per common share (into a total of 8,955,224 shares of common stock), and votes on an as-converted basis. The warrants have an exercise price of $2.11 and expire in August 2015. John Hunt, a partner at ABRY, will join the company’s board of directors.
In connection with this financing, SoftBrands retired the remainder of its outstanding debt, representing $12 million held by CRP.
“We are very pleased to enter into this partnership with ABRY and to continue to receive the support of CRP," said George Ellis, SoftBrands chairman and chief executive officer. “These investors share our belief in the future potential of SoftBrands and their participation will help us with our growth objectives.”
About ABRY Partners
ABRY Partners, based in Boston, is one of the oldest and largest private equity firms in North America. ABRY has over $7 billion of capital under management and since 1989 has completed over $18 billion of leveraged transactions in the media and communications industries.
About Capital Resource Partners
Founded in 1987, Capital Resource Partners provides mezzanine and equity capital for business expansion, acquisitions and recapitalizations. CRP, headquartered in Boston, has in excess of $1 billion under management and invests in a wide range of industries, including business and information services, manufacturing, consumer products and services, software, telecom, and healthcare services.
About SoftBrands
SoftBrands, Inc. is a global leader in providing solutions for small to medium-sized businesses worldwide, currently focused on the hospitality and manufacturing industries. With more than 4,000 customers in over 60 countries now actively using its manufacturing and hospitality products, SoftBrands has established a worldwide infrastructure for distribution, development and support of enterprise software. The company, headquartered in Minneapolis, Minnesota, has over 500 employees with branch offices in Europe, Asia, Australia and Africa. Additional information can be found at www.softbrands.com.
About Marlin & Associates
M&A advised ABRY Partners on this investment. M&A is a specialized investment banking advisory and consulting firm providing transaction advice and services to middle-market firms in the technology, information and business services sectors. The firm is based in New York City and Washington DC. Additional information on M&A can be found at www. marlinandassociates.com.