New facility creates cost savings and added flexibility
CARLSBAD, CA, Nov. 14, 2013 /CNW/ - Pivot Technology Solutions, Inc.
("Pivot" or the "Company") (TSXV: PTG) announces that it has entered
into an agreement with PNC Bank, National Association ("PNC") for the
provision of $185 million (all figures in US $) of senior secured asset
based revolving credit and term loan facilities.
The new facility, held by the Company's wholly owned US holding company,
ACS Acquisition Holdings Inc. with the Company's indirectly wholly
owned subsidiaries ACS, ProSys and Sigma as co-borrowers, replaces the
separate facilities held by ACS, ProSys and Sigma with PNC and Wells
Fargo Bank.
The new consolidated facility consists of a $10 million term loan and a
senior secured revolving credit facility (the "Revolver") that allows
the Company to draw down up to $175 million, the amount available based
on eligible accounts receivable and inventory. PNC has agreed to
underwrite the new facilities and retains the right to syndicate the
new facilities to other lenders in its capacity as sole lead arranger.
Kerri Brass, CFO of Pivot, stated, "The new agreement has several
benefits for Pivot. Firstly, it will create savings on interest
payments. Secondly, the facility will provide increased liquidity
through the Term Loan and higher advance rates on certain accounts.
Thirdly, the facility provides more flexibility through its
consolidated nature, as well as in the use of funds drawn down.
Finally, the facility has an inbuilt mechanism to scale up at our
discretion."
Warren Barnes, CEO of Pivot, stated, "This refinancing is a good example
of how we are achieving synergies through integration of our
operational companies. The new facility is an important step in this
ongoing process, and we are pleased to continue our close partnership
with PNC."
The final maturity of the Term Loan will occur on the date occurring
forty-five (45) months from the date of closing and shall bear interest
at a rate based on LIBOR plus the applicable margin of 10%.
The final maturity of the Revolver will occur on the date occurring five
(5) years from the date of closing. The Revolver shall bear interest at
a rate based on LIBOR plus the applicable margin, which shall vary
between 200 bps and 250 bps, based on excess availability.
Absent the continuation of a default or event of default and so long as
such request is not made during the last year of the term of the
Revolver, the Revolver may be increased by a maximum aggregate amount
of $50 million, without additional approval from the lenders.
About Pivot Technology Solutions, Inc.
Together with its portfolio companies and partners, Pivot delivers
solutions that enable organizations to design, build, implement and
maintain computing and communication infrastructure that addresses
their unique business needs. Pivot's approach supports improvement of
business performance, helps organizations reduce capital and operating
expenses, and accelerates the delivery of new products and services to
end-customers. With over 2,000 clients, many of whom are Fortune 1,000
companies, Pivot extends its value added solutions to help
organizations of all sizes improve operating efficiency, reduce
complexity and enhance service delivery through virtualization and
cloud computing. Pivot enables businesses to extend their enterprise
through mobility solutions to better connect business partners and
customers. Pivot has offices throughout North America and can be found
online at www.pivotts.com.
Forward Looking Statement
This news release contains statements that, to the extent they are not
recitations of historical fact, may constitute "forward-looking
statements" within the meaning of applicable Canadian securities laws.
Forward-looking statements include statements regarding Pivot's future
growth, initiatives or capitalization or the assumptions underlying any
of the foregoing. Pivot uses words such as "may", "would", "could",
"will", "likely", "expect", "believe", "intend" and similar expressions
to identify forward-looking statements. Any such forward-looking
statements are based on assumptions and analyses made by Pivot in light
of its experience and its perception of historical trends, current
conditions and expected future developments, including the assumption
that opportunities identified by Pivot may lead to revenue and income
growth, as well as other factors Pivot believes are appropriate under
the relevant circumstances. However, whether actual results and
developments will conform to Pivot's expectations and predictions is
subject to any number of risks, assumptions and uncertainties. Many
factors could cause Pivot's actual results, to differ materially from
those expressed or implied by the forward-looking statements contained
in this news release. These factors include, without limitation:
uncertainty in the global economic environment; fluctuations in
currency exchange rates; delays in the purchasing decisions of Pivot's
customers; the competition Pivot faces in its industry and/or
marketplace; shareholder support for changes to Pivot's capitalization;
and the possibility of technical, logistical or planning issues in
connection with the deployment of Pivot's products or services.
Forward-looking statements in the press release relate to future savings
on interest payments, increased liquidity available to the Company as
compared to the prior facilities and increased availability of $50
million for the Revolver. Such forward-looking statements are based on
assumptions made by Pivot in light of its experience and its perception
of historical trends, current conditions and expected future
developments, that the full amount of the Revolver will continue to be
available throughout the term and that the $50 million increase in the
Revolver will be made available if requested. However, whether actual
results and developments will conform to Pivot's expectations and
predictions is subject to a number of risks and uncertainties. Many
factors could cause Pivot's actual results, or future events to differ
materially from those expressed or implied by the forward-looking
statements contained in this news release identified above. These
factors include, without limitation, the risk that the Company may be
unable to satisfy all covenants under the credit facilities at all
times. The "forward-looking statements" contained herein speak only as
of the date of this press release and, unless required by applicable
law, the Company undertakes no obligation to publicly update or revise
such information, whether as a result of new information, future events
or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pivot Technology Solutions, Inc.
