Sonicblue sells $75 million bond

Sonicblue announced on Tuesday that it received $62.25 million in additional funding through the sale of a $75 million bond to three undisclosed institutional investors. The net proceeds of the sale will go towards working capital and general corporate purposes, the company said in a release. The company also issued warrants to purchase up to 7,500,000 shares of its common stock.

After the precipitous drop of its stock price, Sonicblue is beginning to see the benefits of a turnaround strategy it started about a year and a half ago. Still, the company has hit some potholes of late. Its recently hired chief financial officer, David Sugishita, left the company, and its inventory sold out during the important holiday season. On the upside, the company in the last two consecutive quarters has issued a release before its earnings report saying it expected to exceed revenue estimates.