TORONTO, Aug. 4, 2015 /CNW/ - Redknee Solutions Inc.
(TSX: RKN), a leading provider of real-time monetization and
subscriber management software, has announced that its wholly-owned
subsidiary, Redknee Inc., has entered into an amended and restated
credit agreement with Wells Fargo Capital Finance, part of Wells
Fargo & Company, and its two partners the Royal Bank of
Canada (RBC) and Capital One. The
amended credit agreement will add to its existing credit facility,
increasing the revolving line of credit to US$40 million and the two term loans to
US$30 million each, for a total
credit facility in the amount of US$100
million. Redknee will use the facility to strengthen its
working capital position following the acquisition of Orga Systems
and to position Redknee for future growth opportunities. The
availability of the debt facility is subject to customary
conditions precedent.
"This newly expanded credit facility will provide Redknee with a
strengthened balance sheet, and the financial flexibility to allow
us to continue to pursue our strategic initiatives," said Lucas
Skoczkowski, Redknee's CEO. "As the leading independent
monetization provider in the industry, we will be in an even
stronger position to deliver our advanced solutions that support
our customers' demand for monetization and profitability through
new digital services and the evolving IoT market."
"We are pleased to have completed another successful financing
for Redknee," said John Leonard,
head of the Technology Finance division of Wells Fargo Capital
Finance. "We are proud to work with Redknee's senior management
team to execute their growth initiatives."
The credit facilities will be secured by the assets of Redknee
Inc., Redknee Solutions (UK) Limited ("Redknee UK") and Redknee
Germany GmbH ("Redknee Germany"). The Company, Redknee UK, and
Redknee Germany have guaranteed the obligations of Redknee
Inc. The Company's guarantee is secured by a pledge of all of
its shares in Redknee Inc.
Forward-Looking Statements
This news release contains "forward-looking information", which may
include, but is not limited to, statements with respect to the
availability of the debt facility and its impact on future
operations, growth, or acquisitions of the Company. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. A number of factors could cause actual results to vary
significantly from the results discussed in the forward-looking
statements, including, but not limited to the failure of the
Company to satisfy the conditions precedent to the availability of
the facility, a material adverse change in the affairs of the
Company, and the factors discussed under the "Risk Factors" section
of the Company's most recently filed AIF which is available on
SEDAR at www.sedar.com or on the Company's website at
www.redknee.com. Forward-looking statements contained herein are
made as of the date of this news release and the Company disclaims,
other than as required by law, any obligation to update any
forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates
or opinions should change, or otherwise. There can be no assurance
that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
About Redknee:
Redknee monetizes today's digital
world. We provide a complete portfolio of mission-critical
monetization and subscriber management solutions and services that
allow communications service providers, utility companies, auto
makers and enterprise businesses of all types to charge for things
in new and innovative ways. Redknee's real-time billing, charging,
policy and customer care offerings provide the agility and
scalability to drive a unique user experience, increase
profitability and support any new product or business model.
Available on premise, cloud-based, or Software-as-a-Service,
Redknee's low-risk, flexible solutions power more than 250
businesses across the globe. Established in 1999, Redknee
Solutions Inc. (TSX: RKN) is the parent of the wholly-owned
operating subsidiary Redknee Inc. and its various subsidiaries.
References to Redknee refer to the combined operations of those
entities. For more information about Redknee and its solutions,
please go to www.redknee.com.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain senior
secured lending services of Wells Fargo & Company and its
subsidiaries across the United
States and internationally. Dedicated teams within Wells
Fargo Capital Finance provide financing solutions for companies in
specific industries such as retail, software publishing and
high-technology, commercial finance, staffing, government
contracting and others. Wells Fargo Capital Finance Corporation
Canada (also doing business in Quebec as Société de financement Wells Fargo
Capital Canada) is an affiliate of Wells Fargo & Company, a
company that is not regulated in Canada as a financial institution, a bank
holding company or an insurance company. For more information,
visit www.wellsfargocapitalfinance.com.
SOURCE Redknee Solutions Inc.