DENVER, Sept. 30, 2016 /CNW/ -- ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, announced today that it has entered in to a new $3.0 million credit facility with Silicon Valley Bank (the "Facility"). The Facility will consist of up to a $2.5 million revolving credit facility (the "Revolving Facility") and a $500,000 term loan (the "Term Loan"). The Company intends to use proceeds from the Facility to repay the remaining promissory notes due November 22, 2017, which bear interest at 15% per annum, and for general corporate purposes.
The Revolving Facility and Term Loan mature on September 30, 2018 and September 30, 2019, respectively, bear interest at the prime rate plus 3.00%, currently 6.5%, and are secured by all the assets of the Company.
"The Facility will allow us to significantly reduce our interest expense and, coupled with the recurring cash generated by our business, will provide us with enhanced financial flexibility to pursue our strategic initiatives," said Jay B. Lewis, CFO, ID Watchdog.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.
©2016 SVB Financial Group. All rights reserved. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group. Silicon Valley Bank is a member of FDIC and Federal Reserve System. SVB>, SVB Financial Group, and Silicon Valley Bank, are trademarks of SVB Financial Group, used under license.
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ID Watchdog, Inc.
Jay B. Lewis
Chief Financial Officer
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SOURCE ID Watchdog, Inc.