CARLSBAD, CA, Sept. 21, 2015 /CNW/ - Pivot Technology Solutions, Inc. ("Pivot" or the "Company") (TSX-V: PTG) today announces that it has entered into a $200 million (all figures in US $) senior secured asset based revolving credit facility agreement with a group of lenders represented by JP Morgan Chase Bank, N.A. ("JPMC"), as agent.
The new facility replaces the Company's current facility, with PNC Bank, National Association, as agent. The proceeds from the facility will serve to fund general working capital of Pivot and its operating companies, and repay the outstanding balances of both its existing term loan and current revolving credit loan facilities with PNC. No penalties are due on redeeming the revolving credit loan facility, while a 1% fee is payable on the remaining principal ($5.75 million) of the term loan.
The new credit facility allows the Company to borrow up to $200 million, with the exact amount available based on eligible accounts receivable and inventory at any time. The facility has been underwritten by a syndicate of lenders led by JPMC and initially includes Bank of America, N.A..
"In replacing the existing facility, we achieve a number of benefits such as lower interest expense, greater liquidity, and additional flexibility in the use of funds drawn down," stated Kerri Brass, CFO of Pivot. "For instance, the new facility allows us to draw down funds for financing international sales, an area we have targeted for growth. The new facility also makes provision to scale up at our discretion in support of overall growth in the business."
The loans under the new credit facility bear interest at a rate based on LIBOR or Canadian Prime Rate plus the applicable margin, which shall vary between 150 bps and 175 bps, or 0 bps and 25bps, respectively, depending on excess availability from time to time. The new credit facility will mature on September 21, 2020.
The new credit facility may be increased by a maximum aggregate amount of $75 million by obtaining additional commitments from one or more lenders, without additional approval from other lenders, during the term of the agreement provided there is no default or event of default at such time.
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 customers, many of whom are Fortune 1000 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 in Ireland 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 the availability of loans under the new credit facility, and 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 the full amount of the credit facility will be available to the Company and all conditions to draw down will be satisfied and 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 and the possibility that Pivot will be unable to draw down on the new credit facility to the full extent of its maximum availability. 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.