Press Release
May 15, 2023

Daktronics Completes $25 Million Convertible Note Investment with Major Shareholder Alta Fox Capital

The Technology and Debt Capital Markets teams advised Alta Fox Capital Management (“Alta Fox”) in connection with the completion of Daktronics (NASDAQ: DAKT) issuance and sale of $25 million aggregate principal amount of its senior secured convertible notes due 2027. Alta Fox is a major shareholder of Daktronics.

The notes were issued and sold in a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. In connection with the transaction, Daktronics also entered into a new 3-year $75 million senior secured credit facility with JPMorgan Chase to replace its existing credit facility.

Based in Fort Worth, Texas, Alta Fox Capital Management is an alternative asset management firm striving to generate exceptional risk-adjusted returns for a diverse group of institutions, family offices, and qualified individual clients through various investment vehicles. The firm’s flagship fund, the Alta Fox Opportunities Fund, was launched in 2018 by Connor Haley. The strategy seeks to invest in overlooked and under-the-radar opportunities across asset classes, market capitalization ranges, geographies, and sectors.

Based in Brookings, South Dakota, Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video.

The Goodwin team was led by James BarriJared Fine, Kim de Glossop, Reid Bagwell, Sne Sadhu, and Rylee Sherouse and included Alexander Nicas, Artem Skorostensky, James Lathrop, Daniel Karelitz and Garrett Gaughan with valuable assistance from Nathan Needle.

For additional details on the transaction, please read the press release.