Synchronoss Technologies Secures Working Capital Financing
October 08 2019 - 8:30AM
Synchronoss Technologies, Inc. (NASDAQ: SNCR), a global leader and
innovator of cloud, messaging, digital and IoT products, today
announced that it has secured two working capital facilities to
provide additional liquidity and flexibility as it continues to
execute its growth objectives.
The company has closed on a three-year $10 million senior
secured line of credit with Citizens Bank N.A. The proceeds of the
line of credit will be used for general corporate purposes.
The company has also entered a Supply Chain Financing program
with Citibank N.A. The program enables the company to accelerate
cash collections by selling receivables to Citibank on a
non-recourse basis. The discount on the receivable sale is based on
the strong credit ratings of our customers. Receivables from key
customers will be included in the Citibank program, which is
expected to provide, on average, between $15 million and $20
million of additional liquidity for the company.
David Clark, Chief Financial Officer, stated, “We are very
pleased partnering with Citizens Financial Group, one of the
nation’s oldest and largest financial institutions, to provide us
with an initial line of credit and building a trusted relationship
for future financing needs at Synchronoss. The facilities announced
today give us additional financial flexibility as we continue to
move forward and grow our business. Together, they are expected to
total approximately $25 million to $30 million, which supplements
our cash balances and the cash-generating ability of the
company.”
About Synchronoss Technologies, Inc.
Synchronoss transforms the way companies create new revenue,
reduce costs and delight their subscribers with cloud, messaging,
digital and IoT products, supporting hundreds of millions of
subscribers across the globe. Synchronoss’ secure, scalable and
groundbreaking new technologies, trusted partnerships, and talented
people change the way TMT customers grow their businesses. For more
information, visit us at www.synchronoss.com.
Forward-looking Statements
This press release includes statements concerning Synchronoss
and its future expectations, plans and prospects that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. For this purpose, any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words “may,” “should,” “expects,”
“plans,” “anticipates,” “could,” “intends,” “believes,” “potential”
or “continue” or other similar expressions are intended to identify
forward-looking statements. Synchronoss has based these
forward-looking statements largely on its current expectations and
projections about future events and financial trends that it
believes may affect its business, financial condition and results
of operations. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions including, without limitation,
risks relating to the Company’s ability to sustain or increase
revenue from its larger customers and generate revenue from new
customers, the Company’s expectations regarding expenses and
revenue, the sufficiency of the Company’s cash, the Company’s
growth strategies, the anticipated trends and challenges in the
business and the market in which the Company operates, the
Company’s expectations regarding federal, state and foreign
regulatory requirements, the pending lawsuits against the Company
described in its most recent SEC filings, and other risks and
factors that are described in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2018 and Quarterly Report on Form
10-Q for the quarter ended June 30, 2019, which are on file with
the SEC and available on the SEC’s website at www.sec.gov. The
company does not undertake any obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise.
Investors:
Joe CrivelliVice President, Investor Relations+1
908-566-3131
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