CellNet Data Systems Completes $100 Million Private Placement.SAN CARLOS, Calif.--(BUSINESS WIRE)--Sept. 29, 1997--CellNet Data Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CNDS CNDS Center for Networking and Distributed Systems (Johns Hopkins University) CNDS Condensate CNDS Calling Name Delivery Service (Ameritech) CNDS Call Number Delivery System ), a leading provider of wireless data communications and Network Meter Reading (NMR NMR: see magnetic resonance. ) services, today announced that it has successfully completed a private placement of Senior Notes, raising $100 million in gross proceeds. The 10-year term interest only Senior Notes are due in 2007, with the first interest payment due in 2003. All existing Senior Notes (1995 issue) will be exchanged for Senior Notes of the new 1997 issue. Warrants to purchase shares of the Company's stock are attached to the Senior Notes. Proceeds from the sale will be used to help fund the Company's continued growth, the ongoing deployment of its networks, continued technology development and improvement efforts, and general and administrative expenditures. John M. (Mick) Seidl, CellNet president and chief executive officer, said: "We're pleased with the capital market's continued vote of confidence in CellNet and in our plans for aggressive growth in the rapidly deregulating energy industry. These funds will support our efforts to serve the national market with the leading-edge metering technology that is essential to the competitiveness of utilities and energy service providers. "Fourteen states, led by California, Massachusetts and Rhode Island and home to roughly 40 percent of the national population, have already made decisions to deregulate deregulate To reduce or eliminate control. One of the major forces in the financial markets in the 1970s and 1980s was the federal government's decision to deregulate interest rates. their state's electric utility industry, and regulators across the country are increasingly turning their attention to the critical role that hourly metering plays in enabling the benefits of deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. ." Enhanced services that CellNet's proven, low-cost wireless data communications network makes possible include: pricing plans offering lower rates for off-peak power consumption; automatic outage detection; power theft detection; remote switch-on and switch-off electric service; flexible and more accurate billing; and interactive home energy management systems. CellNet has contracts for the installation and operation of its wireless data networks with Kansas City Power & Light, Union Electric Company, Northern States Power Company Northern States Power Company (formerly NYSE: NSP) was a publicly-traded S&P 500 electric and natural gas utility holding company based in Minneapolis, Minnesota that is now a subsidiary of Xcel Energy (NYSE: XEL). , Pacific Gas and Electric Company
The Pacific Gas and Electric Company (PG&E) , (NYSE: PCG), is the utility that provides natural gas and electricity to most of Northern California. , Puget Sound Energy Puget Sound Energy (PSE) is an energy company providing electrical power and natural gas in the Puget Sound region of the northwest United States. It serves electrical power to over 1 million customers in Island, Jefferson, King, Kitsap, Kittitas, Pierce, Skagit, Thurston, and , Inc. and Indianapolis Power & Light Company. The networks installed at Kansas City Power & Light and Union Electric Company are the largest commercially deployed for Network Meter Reading today. The Company CellNet Data Systems, Inc., with headquarters in San Carlos, and with more than 770,000 devices on-line and approximately 2.7 million meters under contract, is a leading provider of cost-effective wireless data communication services in the United States. CellNet's networks enable a wide range of on-line, real-time customer service options and applications for the utility industry and other commercial markets. For more information visit http://www.cellnet.com CONTACT: CellNet Data Systems Paul Manca, 650/508-6000 (VP & CFO See Chief Financial Officer. ) Catherine Derr, 650/508-6141 Alex Tsigdinos, 650/508-6976 Elizabeth Olech, 650/508-6072 |
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