Vitesse Strengthens Long-Term Working Capital With Loan Refinance

Vitesse Strengthens Long-Term Working Capital With Loan Refinance 
Improved Terms and Reduction in Convertible Debentures Provides
Flexibility for Accelerating New Product Growth 
CAMARILLO, CA -- (Marketwired) -- 11/07/13 --  Vitesse Semiconductor
Corporation (NASDAQ: VTSS), a leading provider of advanced IC
solutions for Carrier and Enterprise networks, amended its senior
secured loan agreement with Whitebox VSC Ltd. giving the Company
rights of pre-payment, modifying interest rates and extending the
maturity date to August 31, 2016. As part of the loan refinancing,
the Company repurchased $13.7 million of convertible second lien
debentures held by Whitebox, reducing the Company's total
indebtedness. The new terms provide Vitesse with working capital to
further fuel its new product growth strategy and supports increasing
stockholder value.  
"Vitesse is committed to managing our capital structure in order to
achieve sustained profitability," said Chris Gardner, CEO of Vitesse.
"This loan resolution provides us with the flexibility to use our
cash to pre-pay our debt, enabling us to further de-leverage the
Company. Greater cash flexibility allows Vitesse to make prudent
near-term investments to amplify the market traction of our new and
next-generation product portfolios thereby increasing stockholder
value." 
The loan amendment modifies the Company's Term A Loan in the
principal amount of $7.9 million and Term B Loan in the principal
amount of $9.3 million. Both Term A and Term B Loans now come due on
August 31, 2016, and each bears interest in cash at 9.0% per annum
payable quarterly in arrears. The Term B Loan remains convertible
into Vitesse common stock at a price of $4.95 per share through
October 30, 2014. The loan amendment also permits the Company to
pre-pay the Term A and Term B Loans in whole or in part subject to
the payment of a prepayment fee, and to pre-pay the Company's
convertible second lien debentures prior to their maturity in October
2014. 
The Company repurchased Whitebox's $13.7 million of debentures at a
price of 107% of their principal amount. The repurchased debentures
were convertible into approximately 3.0 million common shares.
Following the repurchase, $32.8 million of convertible second lien
debentures remain outstanding. The Company intends to
opportunistically repurchase additional debentures ahead of their
maturity. 
The original loan agreement was entered into on August 23, 2007.
Additional detail about the loan amendment and repurchase of
debentures will be available in the Company's Current Report on Form
8-K to be filed with the Securities and Exchange Commission. 
About Vitesse
 Vitesse (NASDAQ: VTSS) designs a diverse portfolio of
high-performance semiconductor solutions for Carrier and Enterprise
networks worldwide. Vitesse products enable the fastest-growing
network infrastructure markets including Mobile Access/IP Edge, Cloud
Computing and SMB/SME Enterprise Networking. Visit www.vitesse.com or
follow us on Twitter @VitesseSemi. 
Vitesse is a registered trademark of Vitesse Semiconductor
Corporation in the United States and other jurisdictions. All other
trademarks or registered trademarks mentioned herein are the property
of their respective holders. 
VTSS-F 
Cautions Regarding Forward Looking Statements
 All statements
included or incorporated by reference in this release, other than
statements or characterizations of historical fact, are
forward-looking statements that are based on our current
expectations, estimates and projections about our business and
industry, management's beliefs, and certain assumptions made by us,
all of which are subject to change. Forward-looking statements can
often be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "predicts," and similar
terms, and variations or negatives of these words. Examples of
forward-looking statements in this release include the Company's
intention to repurchase additional debentures. Forward-looking
statements are not guarantees of future performance and the Company's
actual results may differ significantly from the results discussed in
the forward-looking statements. Factors and uncertainties that could
affect the Company's forward-looking statements include, among other
things, the unwillingness of debenture holders to sell their
debentures to the Company on acceptable terms, or at all. These and
other risks are more fully described in the Company's filings with
the Securities and Exchange Commission, including the Company's most
recently filed Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, which should be read in conjunction herewith for a further
discussion of important factors that could cause actual results to
differ materially from those in the forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. 
Company Contact:
Marty McDermut
Vitesse Semiconductor
www.vitesse.com
+1.805.388.3700
invest@vitesse.com  
Agency Contact:
Becky Herrick
LHA
www.lhai.com
+1.415.433.3777
VTSS@lhai.com 
 
 
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