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Subsequent events
12 Months Ended
Dec. 26, 2014
Subsequent Events [Abstract]  
Subsequent events
Subsequent events

Definitive Merger Agreement with Oaktree Capital Management, L.P.

On February 28, 2015, we entered into the Merger Agreement with OCM PE Holdings and the Merger Sub, both of which are entities affiliated with Oaktree, which currently owns approximately 68.8% of our outstanding shares of common stock.

The Merger Agreement provides for the following transactions: (i) the extension of a loan (the “Loan”) by OCM PE Holdings or its affiliates to us in the amount of $8.5 million within 30 days of the date of the Merger Agreement, subject to the execution of mutually acceptable definitive loan, guarantee, or collateral documentation and the satisfaction of certain other specified conditions precedent; (ii) at the closing, the contribution by OCM PE Holdings of $17.0 million in cash less the principal amount of the Loan, if any, to us, and the conversion of any such Loan, in exchange for such number of shares of our common stock as shall be determined by dividing the aggregate investment amount of $17.0 million (together with accrued interest, dividends or other amounts accrued thereon) by $1.50, with the result that Oaktree will own in excess of 80% of the outstanding shares of our common stock (collectively, the “Investment”); and (iii) following the consummation of the Investment, the Merger, with Pulse Electronics Corporation continuing as the surviving corporation in accordance with Section 1924(b)(1)(ii) and Section 1924(b)(3) of the Pennsylvania Business Corporation Law of 1988, as amended (“PBCL”).

Upon the consummation of the Merger, each outstanding share of our common stock (other than shares held by Oaktree and shares as to which the holder has exercised statutory dissenters rights under the PBCL) will be canceled and converted into the right to receive cash in an amount equal to $1.50 per share, without interest. Following the Merger, we will terminate our reporting obligations to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and our common stock will no longer be publicly traded on the over-the-counter markets.

Upon the recommendation of a special committee of independent directors, the Merger Agreement and the transactions contemplated thereby have been unanimously approved by our Board of Directors other than Kaj Vazales, the director designated to the Board of Directors by Oaktree, who abstained from such decision. The Investment and the Merger are subject to customary closing conditions, and there can be no assurance that the transactions will close on the terms described herein, or at all. The Merger Agreement also contains certain termination rights for both us and OCM PE Holdings, and further provides that, upon termination of the Merger Agreement under specified circumstances, we may be required to reimburse OCM PE Holdings for its reasonable expenses incurred in connection with the Merger Agreement and the transactions contemplated thereby.

Withdrawal of Form 15 – Deregistration with the Securities and Exchange Commission

On February 23, 2014, we filed an Amended Form 15 with the Securities and Exchange Commission (the "Commission") withdrawing the earlier Form 15s filed with the Commission on October 16, 2014 and December 29, 2014. The earlier Form 15s were filed to deregister our common stock and to suspend our filing obligations under the Securities Exchange Act of 1934. At the time of the filing of the earlier Form 15s, the Company believed it had less than 300 holders of record based on information received from its transfer agent; however, based on the review of information that subsequently became available, we now believe there were in excess of 300 holders of record of common stock at the time of the filing of the earlier Form 15s. Therefore, on February 23, 2015, we filed Amendment No. 1 to the earlier Form 15 filings with the Commission to withdraw the earlier Form 15 filings. Accordingly, we are resuming compliance with the applicable reporting requirements of the Securities Exchange Act of 1934. We were not required to file any reports with the Commission from the time its reporting obligations ceased through the filing date of the Amended Form 15.