SAN RAMON, Calif., Aug. 31, 2011 /PRNewswire/ -- Systems America, Inc. (OTC: SYAI), a premier provider of cloud computing and information technology solutions, announced today that it has received a commitment letter from Bridge Bank. Pursuant to this commitment letter, Bridge Bank has agreed to provide Systems America a secured $6 million asset-based line of credit and $2 million term loan that would be used to acquire specific targeted companies. Upon execution of definitive documents, the Company intends to use the facility to finance its acquisition of the targeted companies and future growth opportunities.
As currently contemplated, borrowings under the credit facility would bear annual interest at variable market rates. The Company anticipates completing legal documentation and closing on the facility in the next few weeks.
"This proposed new facility strengthens the Company's balance sheet and provides additional working capital to accommodate future growth," said Adesh Tyagi, Chief Executive Officer of Systems America. Adesh Tyagi further added that "We have successfully negotiated with several acquisition target companies over the past few months. Based on our negotiations and organic growth, we can demonstrate improved operating cash flow, and are now poised to build upon this foundation going forward."
The Closing of the transaction is subject to certain conditions, including execution of a definitive acquisition agreement. There can be no assurance that the financing will be consummated.
About Systems America
Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide. We are ranked one of the fastest growing companies with multiple locations around the world. Systems America delivers superior cloud computing, information technology consulting services, and systems and integration services to hundreds of clients worldwide. Building on a core competency of efficient technology infrastructure outsourcing, the company headquartered in San Ramon, California, United States. For additional information about Systems America, please visit www.systemsamerica.com.
Forward-Looking Statements Disclosure
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Systems America, Inc.