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.
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.
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 Statesand 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.