Why CalAmp (CAMP) Stock Is Down 50%

CalAmp Corp CAMP shares are trading lower by 53% to $1.25 during Monday’s session after the company announced a Restructuring Support Agreement (RSA) with its main secured lender, Lynrock Lake Master Fund LP. Lynrock will become the primary equity owner of CalAmp and will take the company private.

To strengthen its financial position, CalAmp plans to convert approximately $229 million of Convertible Senior Secured Notes held by Lynrock into equity. Despite the restructuring, CalAmp’s operations will continue normally, and partners will be paid as usual.

CalAmp has also initiated Chapter 11 bankruptcy proceedings in Delaware to facilitate the go-private transaction efficiently. Lynrock supports CalAmp’s long-term strategy and growth prospects. The RSA aims to quickly navigate the restructuring process upon court approval.

Chris Adams, CEO of CalAmp, emphasized that savings from debt interest elimination and reduced public company overhead will be reinvested to support customer needs. CalAmp aims to emerge from this process with a stronger financial position and improved cash flow.

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According to data from Benzinga Pro, CAMP has a 52-week high of $50.14 and a 52-week low of $1.05.