NEW YORK, May 2, 2017 /PRNewswire/ -- Pareteum
Corporation (NYSE MKT: TEUM), ("Pareteum" or the
"Company"), a leading international provider of mobile
networking software and services to the Mobile Network and Internet
of Things markets, today announced that the Company and Atalaya
Capital Management ("Atalaya"), its senior secured lender, have
agreed to further positive revisions to the Amended & Restated
Credit Agreement among the parties dated December 27, 2016, and as Amended on March 6, 2017, a result of continued execution of
the Company's restructure and turnaround.
Under the terms of the latest amendment, the parties have agreed
to reduce the quarterly principal amortization payment amounts and
confirmed the maturity date of December 31,
2018. Previously, under the terms of the amendment dated
March 31, 2017, the maturity date was
to be extended to December 31, 2018
contingent upon the Company's ability to satisfy the terms of its
outstanding principal pay down
schedule including payment of $1.5
million in the first quarter of 2017 which has been paid.
The revised repayment schedule reduces the principal repayments to
$250,000 for the second and third
quarters of 2017 and $500,000 for the
fourth quarter of 2017 improving cashflow by reducing cash required
for debt servicing by $1.5 million
for the remainder of 2017. The quarterly principal repayments for
2018 have also been materially reduced from $750,000 per quarter to $500,000 per quarter.
Year-to-date, the Company reduced the outstanding principal balance by $1.75 million. Furthermore, the new Second
Amendment has reset the financial statement covenants required to
remain within compliance of the agreement to current business plan
actual performance results. Finally, the parties have also agreed
to a quarterly business progress review program that may result in
future interest rate reductions and potentially other improved
conditions if the Company continues to achieve financial,
operational, and sales improvements.
"Today's agreement confirms our planned progress in positioning
the Company for sustainable operations and growth. This progress
unleashes cash flows that will now be invested in the growth of the
business, and coupled with the considerable increase in sales
activity being driven by our expanded team of talented industry
veterans, well positions us for accelerated future growth," said
Hal Turner, Pareteum's Executive
Chairman. "Collectively, these favorable amendments demonstrate
Atalaya's growing confidence in our plan and in our team. By moving
the Company to a quarterly business review cycle and reducing our
quarterly principal payment amounts, we are now able to operate the
business with more flexibility and improved cash flow. It is also
gratifying that Atalaya's support now includes their willingness to
serve as a business reference during our competitive sales and bid
processes."
About Pareteum Corporation
Pareteum Corporation and
its subsidiaries provide a complete mobility cloud platform,
utilizing messaging and security capabilities for the global
Mobile, MVNO, Enterprise, SaaS and IoT markets. Mobile Network
Operator (MNO) customers include Vodafone, the world's second
largest mobile operator by customer count, Zain, the 4th largest
mobile operator in the world in terms of geographical presence and
other Tier 1 operators, MVNO customers such as Lebara and Lowi, and
partners including Cleartech and Expeto. For more information
please visit: www.pareteum.com.
Forward Looking Statements:
Certain statements
contained herein constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements may include, without limitation, statements with
respect to Pareteum's plans and objectives, projections,
expectations and intentions. These forward-looking statements are
based on current expectations, estimates and projections about
Pareteum's industry, management's beliefs and certain assumptions
made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance
and are subject to certain risks, uncertainties and assumptions
that are difficult to predict. Because such statements involve
risks and uncertainties, the actual results and performance of
Pareteum may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Unless otherwise required by law,
Pareteum also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made here.
Additional information concerning certain risks and uncertainties
that could cause actual results to differ materially from those
projected or suggested in Pareteum's filings with the Securities
and Exchange Commission, copies of which are available from the SEC
or may be obtained upon request from Pareteum Corporation.
Shareholder Contact:
Steve Gersten
(813)
926-8920
InvestorRelations@Pareteum.com
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SOURCE Pareteum Corporation