New facility creates cost savings and added flexibility
CARLSBAD, CA, Nov. 14, 2013 /CNW/ - Pivot Technology Solutions, Inc. ("Pivot" or the "Company") (TSXV: PTG) announces that it has entered into an agreement with PNC Bank, National Association ("PNC") for the provision of $185 million (all figures in US $) of senior secured asset based revolving credit and term loan facilities.
The new facility, held by the Company's wholly owned US holding company, ACS Acquisition Holdings Inc. with the Company's indirectly wholly owned subsidiaries ACS, ProSys and Sigma as co-borrowers, replaces the separate facilities held by ACS, ProSys and Sigma with PNC and Wells Fargo Bank.
The new consolidated facility consists of a $10 million term loan and a senior secured revolving credit facility (the "Revolver") that allows the Company to draw down up to $175 million, the amount available based on eligible accounts receivable and inventory. PNC has agreed to underwrite the new facilities and retains the right to syndicate the new facilities to other lenders in its capacity as sole lead arranger.
Kerri Brass, CFO of Pivot, stated, "The new agreement has several benefits for Pivot. Firstly, it will create savings on interest payments. Secondly, the facility will provide increased liquidity through the Term Loan and higher advance rates on certain accounts. Thirdly, the facility provides more flexibility through its consolidated nature, as well as in the use of funds drawn down. Finally, the facility has an inbuilt mechanism to scale up at our discretion."
Warren Barnes, CEO of Pivot, stated, "This refinancing is a good example of how we are achieving synergies through integration of our operational companies. The new facility is an important step in this ongoing process, and we are pleased to continue our close partnership with PNC."
The final maturity of the Term Loan will occur on the date occurring forty-five (45) months from the date of closing and shall bear interest at a rate based on LIBOR plus the applicable margin of 10%.
The final maturity of the Revolver will occur on the date occurring five (5) years from the date of closing. The Revolver shall bear interest at a rate based on LIBOR plus the applicable margin, which shall vary between 200 bps and 250 bps, based on excess availability.
Absent the continuation of a default or event of default and so long as such request is not made during the last year of the term of the Revolver, the Revolver may be increased by a maximum aggregate amount of $50 million, without additional approval from the lenders.
About Pivot Technology Solutions, Inc.
Together with its portfolio companies and partners, Pivot delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their unique business needs. Pivot's approach supports improvement of business performance, helps organizations reduce capital and operating expenses, and accelerates the delivery of new products and services to end-customers. With over 2,000 clients, many of whom are Fortune 1,000 companies, Pivot extends its value added solutions to help organizations of all sizes improve operating efficiency, reduce complexity and enhance service delivery through virtualization and cloud computing. Pivot enables businesses to extend their enterprise through mobility solutions to better connect business partners and customers. Pivot has offices throughout North America and can be found online at www.pivotts.com.
Forward Looking Statement
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements include statements regarding Pivot's future growth, initiatives or capitalization or the assumptions underlying any of the foregoing. Pivot uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Pivot in light of its experience and its perception of historical trends, current conditions and expected future developments, including the assumption that opportunities identified by Pivot may lead to revenue and income growth, as well as other factors Pivot believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to Pivot's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Pivot's actual results, to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of Pivot's customers; the competition Pivot faces in its industry and/or marketplace; shareholder support for changes to Pivot's capitalization; and the possibility of technical, logistical or planning issues in connection with the deployment of Pivot's products or services.
Forward-looking statements in the press release relate to future savings on interest payments, increased liquidity available to the Company as compared to the prior facilities and increased availability of $50 million for the Revolver. Such forward-looking statements are based on assumptions made by Pivot in light of its experience and its perception of historical trends, current conditions and expected future developments, that the full amount of the Revolver will continue to be available throughout the term and that the $50 million increase in the Revolver will be made available if requested. However, whether actual results and developments will conform to Pivot's expectations and predictions is subject to a number of risks and uncertainties. Many factors could cause Pivot's actual results, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release identified above. These factors include, without limitation, the risk that the Company may be unable to satisfy all covenants under the credit facilities at all times. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
Neither the 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.
SOURCE: Pivot Technology Solutions, Inc.
For further information:
CEO, Pivot Technology Solutions, Inc.
Tel: 416 815 0700