Saturday 5 December 2009

Swing Media secures $10m equity line facility

Swing Media Technology Group says it has entered into a $10 million equity line facility (ELF) with YA Global Master SPV, a fund managed by New Jersey’s Yorkville Advisors.

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Guanyu said...

Swing Media secures $10m equity line facility

By ZHANG JIAO
05 December 2009

Swing Media Technology Group says it has entered into a $10 million equity line facility (ELF) with YA Global Master SPV, a fund managed by New Jersey’s Yorkville Advisors.

The group, a manufacturer and supplier of data storage products and peripherals, plans to use the funds for its general corporate and working capital purposes. It also wants to further expand its core business and explore new ventures, including expansion into China’s green energy sector.

‘The partnership is an endorsement by the US-based fund manager of its confidence in our recent foray into the China green energy-focused business,’ said Matthew Hui, chief executive officer of Swing Media, yesterday.

Anthony Chan, managing director at Yorkville HK, said: ‘We are excited by the prospects of Swing Media’s future strategic expansion into the high-growth China green energy sector.’

According to the group, the ELF is structured differently from other structured equity financing deals.

Key differences include the fact that for a period of 24 months following the execution of the ELF, Swing Media may draw down $10 million of equity capital in tranches, in exchange for the issue of new equity, at a discount to the prevailing market price.

Swing Media has manufacturing facilities in Hong Kong and Taiwan, and distributes its products to China, across Asia, Europe and the US. The group is also investing in the green energy business in China.

The group first ventured into the green energy business in October with the signing of an agreement to acquire an 80 per cent stake in Shanghai Hui Yang New Energy Technology.

‘Shanghai Hui Yang possesses intellectual property rights for the development and sale of solar and wind-powered energy systems, and also energy-saving LED lighting systems. The LED lighting systems have already been installed in some PRC military facilities,’ said Swing Media.