BenefitStreet, Inc. announced today that key bridge financing has been
committed and that the Company is now negotiating terms to secure an
additional $10 to $20 million in longer-term funding. The bridge
financing came on the heels of a recent BenefitStreet stockholder vote
that approved a capital restructuring within the organization.
“It’s clear that the
rumors of BenefitStreet’s demise have been
greatly exaggerated,” said Jerry Bramlett,
BenefitStreet’s President and CEO. “The
bridge financing will enable us to continue providing great service and
support to our customers. It also puts us in a position to complete a
couple of very important near-term initiatives –
namely completing the sales of our remaining TPA groups and securing the
longer-term financing we’ll need to carry out
our unique mission moving forward.”
The bridge financing, coupled with proceeds from the TPA sales, enhances
the financial situation for BenefitStreet considerably. “Achieving
the first two milestones in the strategic plan gives us more than enough
capital to fund operations between now and our next round of equity
financing,” said Bramlett
With the stockholders on board and short-term cash needs addressed,
Bramlett is now focused on the third component of the 3-part strategic
plan he laid out shortly after taking the helm at BenefitStreet. “The
plan is to raise an additional $10 to $20 million in longer-term
financing, and I’m in ongoing discussions
with a number of interested parties. With the capital restructuring now
in place, I’m confident that the terms should
come together fairly quickly.”
As for the sales of the remaining TPA groups, Bramlett added that all of
the TPAs are either sold or under a Letter of Intent to close between
now and May 30th.
In the meantime, BenefitStreet remains focused on day-to-day operations
and providing clients with the service and support they expect.
“As an independent recordkeeper, we place
tremendous value on the many strong relationships we have across the
country with advisors, partners and clients,”
said Ken Weida, BenefitStreet’s co-founder
and SVP of Sales. “We appreciate their
loyalty and support, and we look forward to working closely with them as
BenefitStreet positions itself to take the next step in its evolution.”
About BenefitStreet
BenefitStreet is a pioneer in the creation and delivery of innovative
solutions for defined contribution recordkeeping, and is constantly
improving the way corporations provide and manage retirement benefits.
As a leading independent, unbundled provider of 401(k) recordkeeping
solutions and administrative services, BenefitStreet is committed to
improving the value of retirement benefits to employees while reducing
the complexity and cost businesses face in offering those benefits.
Founded in 1993, BenefitStreet serves more than 1,500 corporate clients
from its headquarters in San Ramon, Calif., and several locations
throughout the United States. For more information, please visit www.benefitstreet.com.
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