MELBOURNE, Florida,
May 29, 2018 /PRNewswire/ --
Nxt-ID, Inc. (NASDAQ: NXTD) (the "Company") today announced
the closing of a new $16 million
senior secured term loan due 2023 (the "Term Loan") through Sagard
Credit Partners LP ("SCP"). The Company will use the proceeds
from the Term Loan to refinance its existing revolving loan
facility and to pay for accrued interest and costs associated with
the refinancing. In addition, the Term Loan proceeds will also
provide ongoing working capital, funds for future capital
expenditures, and capital for general corporate purposes.
Key features of the Term Loan include:
- Interest rate of LIBOR + 9.5%, resulting in a savings in annual
interest expense of approximately $2
million a year as compared to the terms and conditions of
the previous revolving loan facility and based on current interest
rates;
- Maturity date of May 24,
2023;
- No mandatory debt amortization
- Issuance of two Common Stock Purchase Warrants to the
Lender. Each Warrant is exercisable for an aggregate of
244,081 shares of the Company's Common Stock. Each Warrant will be
exercisable beginning on May 24,
2018, and will be exercisable for a period of five years.
The exercise price per Warrant Share, is $3.90 for the first Warrant and $4.88 for the second Warrant.
"This transaction significantly lowers our interest rate which
will significantly increase our cash flow," said the Company's
Chief Executive Officer, Gino
Pereira. "It provides stability to our balance sheet and
improves our overall financial position, which will help serve as a
catalyst for future growth. This is a positive step forward for the
Company."
The transaction replaces the Company's existing revolving loan
facility. The transaction was financed by SCP, a Canadian private
credit firm which provides direct credit financing to public and
private middle market companies across Canada and the U.S., financed the
transaction.
"We are very pleased to work with NXT-ID management on this
refinancing transaction," said Mustafa
Humayun of SCP. "We look forward to fostering a long and
mutually beneficial relationship with the company and supporting
potential future growth needs."
About Sagard Credit Partners:
SCP provides direct credit financing to public and private middle
market companies across Canada and
the U.S. SCP works with companies to craft solutions tailored to
their unique financing needs, including term loans, notes,
debenture financing, and other bespoke solutions and can provide
certainty on terms, structure and execution. SCP has a long-term
outlook and seeks to build lasting relationships with its investors
as well as the companies in which it deploys capital. SCP is
sponsored by Sagard Holdings ULC, an investment platform that
invests in equity and debt capital of middle market companies in
the US and Canada. For more
information on SCP please visit our
website http://www.sagardholdings.com/credit-partners/.
About NXT- ID, Inc.
NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of
technology products and services that enable the Internet of Things
(IoT). With extensive experience in access control, biometric and
behavior-metric identity verification, security and privacy,
encryption and data protection, payments, miniaturization and
sensor technologies, NXT-ID develops and markets groundbreaking
solutions for payment and IoT applications. Its industry-leading
technology products and solutions include MobileBio®, a suite of
biometric solutions that secure consumers' mobile platforms, the
Wocket™, a next-generation smart wallet and the Flye, a digital
credit card developed in collaboration with WorldVentures.
NXT-ID includes mobile and IoT-related subsidiaries: LogicMark,
LLC, a manufacturer and distributor of non-monitored and monitored
personal emergency response systems ("PERS") sold through
dealers/distributors and the United States Department of Veterans
Affairs and Fit Pay, Inc., a proprietary technology platform that
delivers end-to-end solutions to device manufacturers for
contactless payment capabilities, credential management,
authentication and other secure services within the IoT ecosystem.
Learn more about NXT-ID at www.nxt-id.com. FitPay and the FitPay
Payment Platform are the sole property of Fit Pay, Inc. For NXT-ID
Inc. corporate information contact: info@nxt-id.com
Forward-Looking Statements for NXT-ID: This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect management's current expectations, as of the
date of this press release, and involve certain risks and
uncertainties. Forward-looking statements include statements herein
with respect to the successful execution of the Company's business
strategy. The Company's actual results could differ materially from
those anticipated in these forward-looking statements as a result
of various factors. Such risks and uncertainties include, among
other things, our ability to establish and maintain the proprietary
nature of our technology through the patent process, as well as our
ability to possibly license from others patents and patent
applications necessary to develop products; the availability of
financing; the Company's ability to implement its long range
business plan for various applications of its technology; the
Company's ability to enter into agreements with any necessary
marketing and/or distribution partners; the impact of competition,
the obtaining and maintenance of any necessary regulatory
clearances applicable to applications of the Company's technology;
and management of growth and other risks and uncertainties that may
be detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission.
Media Contacts:
Chris Orlando
chris.orlando@nxt-id.com
+1-760-468-7273
D. Van Zant
+1-800-665-0411
press@nxt-id.com
SOURCE NXT-ID, Inc.