Network security outfit Secure Computing Inc said it has completed a $16m private placement with two investors led by an affiliate of Credit Suisse First Boston and including affiliates of Castle Creek Partners, a Chicago-based private investment house specializing in technology investments. Under the terms of the deal, Secure Computing sold 16,000 shares of newly designated convertible preferred stock. The stock is convertible into shares of common stock six months after issuance and will automatically convert three years after the date of its issuance. The company says it has enhanced its balance sheet and is now better positioned to more fully pursue strong growth opportunities. Chief financial officer Tim McGurran said the deal, which adds to the $45m in cash the company already had, was done as a customer position maneuver. He described it as window dressing to reassure customers that the company is well-positioned for longevity after having some well-noted cash burn rate problems in the past. He said the company is generally cash-neutral now and would be cash-positive this quarter.
