Pulse Electronics Corporation Announces Closing of Oaktree Investment

  Pulse Electronics Corporation Announces Closing of Oaktree Investment

Business Wire

SAN DIEGO -- November 20, 2012

Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic
components, today announced the closing of its previously announced
recapitalization investment by certain affiliates of investment funds managed
by Oaktree Capital Management, L.P., an affiliate of Oaktree Capital Group,
LLC (NYSE:OAK).

At the closing of the recapitalization, Pulse received $75 million in cash
under new Term Loan A and issued to Oaktree 36,729,183 shares of Pulse’s
common stock and a warrant to purchase shares of a subsidiary that will
terminate upon issuance of shares of a new class of Pulse non-voting preferred
stock. The common stock issued to Oaktree, along with other common stock
Oaktree already owned, represents approximately 49% of the outstanding common
stock of Pulse. Additionally, Oaktree exchanged approximately $27.7 million of
the company’s $50 million in outstanding 7% senior convertible notes due 2014
for new Term Loan B.

Pulse’s overall senior indebtedness increased to approximately $125 million
following the recapitalization. Interest under Term Loans A and B is
payable-in-kind by adding the interest to the loan balance.

Pulse used the proceeds to repay approximately $55 million outstanding under
its senior credit agreement with its existing lenders and intends to use the
remaining approximately $20 million for fees and expenses associated with the
transactions, working capital, and general business purposes.

Ralph Faison, Pulse Chairman and Chief Executive Officer, stated, “We are very
pleased to have closed this recapitalization transaction with Oaktree. The
proceeds of this investment provide immediate improvement to our liquidity,
address the maturity of our existing credit agreement, and significantly
reduce our cash debt service costs. This investment provides Pulse with the
time and resources to continue our operating initiatives and our long term
growth strategy. The investment also demonstrates Oaktree’s strong belief in
the fundamental market and operational strength of the company.”

The description of the terms of the recapitalization transactions contained in
this press release is a summary. The company encourages you to read the full
agreements which it filed as exhibits to a Current Report on Form 8-K with the
Securities and Exchange Commission on November 16.

About Pulse Electronics Corporation

Pulse Electronics is the electronic components partner that helps customers
build the next great product by providing the needed technical solutions.
Pulse has a long operating history of innovation in magnetics, antennas and
connectors, as well as the ability to ramp quickly into high-quality,
high-volume production. The company serves the wireless and wireline
communications, power management, military/aerospace and automotive
industries. Pulse Electronics is a participating member of the IEEE, SFF, OIF,
HDBaseT Alliance, CommNexus, and MoCA. For more information, visit the
company’s web site at www.pulseelectronics.com.

Safe Harbor

To the extent that statements in this press release are not strictly
historical, such statements are "forward-looking" and made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on the Company's current
information and expectations. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from the statements made. Examples of such risks include those
related to the risk factors disclosed from time to time in the Company's SEC
filings, including, but not limited to, those discussed in the Company's most
recent reports on Form 10-K, 10-Q and 8-K, and any amendments thereto. All
such risk factors are incorporated herein by reference as though set forth in
full. The Company undertakes no obligation to update any forward looking
statement.

Copyright © 2012 Pulse Electronics Corporation. All rights reserved. All brand
names and trademarks are properties of their respective holders.

Contact:

Pulse Electronics Corporation
Drew A. Moyer
Senior Vice President, Chief Financial Officer
858-674-8268
dmoyer@pulseelectronics.com
 
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