Tuesday, June 6, 2006
Vitesse Gets Investment From Tennenbaum
Camarillo-based Vitesse Semiconductor has received financing from Tennenbaum Capital Partners, the firm said yesterday afternoon. Vitesse said that Tennenbaum has agreed to lend Vitesse up to $24M in the form of a four year, secured note, and up to an additional $30M if the firm meets certain conditions. The move comes as Vitesse faced issues with a line of credit and other lenders due to the SEC's widespread options backdating investigation in the industry. Vitesse had earlier fired its CEO, CFO, and EVP over the issue, and had restated results. Vitesse said that the investment would allow it to invest in strategic markets and continue to provide cusomers with products and support. Vitesse is a developer of semiconductors used in the communications and storage space.