IRVINE, Calif., July 14 /PRNewswire-FirstCall/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) today announced that it has successfully closed a series of transactions with its secured lender, WB QT, LLC ("Lender"), pursuant to which the Company: (i) received $3 million in additional debt financing structured as an 11.5% convertible note with a conversion price of $0.71, (ii) extended the maturity date on its Term Loan C, which has a current outstanding balance of $4.2 million, to August 31, 2010, (iii) amended its convertible note issued on January 31, 2008, which has a current outstanding balance of $7.2 million, by extending the maturity date to August 31, 2010, lowering the conversion price from $1.35 to $0.71, and eliminating the make-whole provision, (iv) exchanged its Term Note A, which had a current outstanding balance of $6.6 million and that was scheduled to mature on August 1, 2009, for a new 11.5% convertible note with a conversion price of $0.71 and a maturity date of August 31, 2010, and (v) amended and extended, for an additional 12 months, an unexercised $10 million commitment from its Lender.
The new $3 million convertible instrument has a scheduled maturity date of August 31, 2010, unless the Company does not raise gross proceeds of at least $5 million of new equity before October 1, 2009, in which case the maturity date would be October 1, 2009. Notwithstanding this one condition, the Company believes the modifications to maturity dates and other payment provisions on all of the Company's existing debt instruments with its Lender results in the elimination of any requirement for the Company to use its cash or other working capital to satisfy any scheduled principal maturities, Lender principal demands or Lender conversions prior to August 31, 2010.
The $10 million commitment letter originally issued by the Lender on May 30, 2008 has been modified and extended through August 31, 2010. Under the terms of the new commitment letter, the Lender granted the Company an unconditional option to call on the Lender to make an additional $10 million investment in the Company, and the Company granted the Lender an unconditional option to make an additional $10 million investment in the Company. If the Company exercises its call right, then the Lender can choose to make the investment in one of two different investment structures: (a) a two year 12% secured note, convertible into common stock at a conversion price equal to market price of a share of common stock at the time of issuance of the convertible note, with the interest payable in common stock, or (b) a senior secured loan redeemable at 130% of face value after one year.
