Glowpoint Announces Debt Refinancing
DENVER, Oct. 23, 2013 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading provider of cloud-based video collaboration, network and support services, announced today that the Company refinanced its existing debt facilities. The Company secured a new credit facility from Main Street Capital Corporation ("Main Street"), consisting of a term loan commitment of $11.0 million and a revolving line of credit up to $2.0 million. On October 17, 2013, the Company received an initial term loan of $9.0 million and funding of $0.2 million on the revolver. The Company may request additional term loans up to $2.0 million subject to the terms and conditions of the loan agreement and approval by Main Street. The proceeds of the $9.0 million term loan will be used to repay $8.5 million of existing term loans in addition to facility fees and expenses.
The term loan matures on October 17, 2018, with monthly interest payments and quarterly principal payments based on a certain percentage of excess cash flow as defined in the loan agreement.
"We're very pleased to complete this debt refinancing as it provides the Company with additional liquidity and greater financial flexibility," said David Clark, Chief Financial Officer of Glowpoint.
"Main Street Capital is one of the leading Business Development Companies in the market today for a reason – they work very closely with their portfolio companies to provide expansion capital for shareholder growth. Their track record is unsurpassed and I look forward to continuing our long term relationship," said Pete Holst, President and CEO.
"Main Street is very excited to be partnering with Glowpoint and its management team. Main Street's investment philosophy centers around providing capital to established, growing companies that are led by strong management teams and we believe this investment is a great fit for that philosophy. We look forward to our relationship and hope to help the company continue to grow by providing flexible capital as needed," said Robert Shuford, Managing Director of Main Street Capital Corporation.
Glowpoint, Inc. (NYSE MKT: GLOW) provides video collaboration, network, and support services to large and mid-sized enterprises to support their unified communications (UC) strategies and business goals. More than 1,000 organizations in 96 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com.
Forward looking and cautionary statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information in this release may contain statements that are or may be deemed to be forward-looking statements, including statements regarding the Company's anticipated liquidity and financial flexibility, and such statements involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance and availability of new video communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission. We make no representation or warranty that the information contained herein is complete and accurate; we have no duty to correct or update any information.
David Clark, CFO
SOURCE Glowpoint, Inc.