Despite the company’s impressive growth trajectory, businesses in the Latin American telecommunications market were not in favor with investors; also the rapid growth required significant working capital
Brightstar, Inc. is a global leader in customized distribution and supply chain solutions for the wireless industry. Brightstar, Inc. operates facilities in 50 countries on six continents, giving it the largest global reach for its customers. The Company provides solutions to more than 30,000 network operators, retailers, resellers and independent agents around the world, and also represents the world’s leading wireless manufacturers.
At the time of investment, the company operated throughout the Western Hemisphere, but generated the majority of its revenue in Latin America. While the company had significant experience operating there, the region nonetheless was perceived to entail a significant amount of political and economic risk. The management team was poised to capture significant market share but rapid growth required long-term junior capital. The financing consisted of both convertible senior subordinated notes and convertible preferred stock.