Qumu Closes $10 Million Credit Agreement
January 16 2018 - 8:00AM
Business Wire
Credit agreement replaces existing credit facility, defers
covenant measurements for 12 months and provides additional cash
for operations
Qumu Corporation (NASDAQ: QUMU) today announced that it closed a
$10 million credit agreement with ESW Capital, LLC (through its ESW
Holdings, Inc. subsidiary) on January 12, 2018. The new agreement
replaces the Company's existing $8.0 million term loan credit
agreement with Hale Capital Partners, LP, the outstanding balance
of which was paid with proceeds from the new term loan.
The credit agreement provides a $10 million term loan drawn at
close, with principal due on January 10, 2020 and PIK interest set
at prime plus 4.0% compounding monthly. In connection with the
credit agreement, the Company issued a 10-year warrant to purchase
925,000 shares of the Company's common stock at an exercise price
of $1.96 per share. The Company intends to use the funds remaining
after repayment of the prior term loan to fund general corporate
purposes.
"This credit agreement strengthens our balance sheet with a
facility that has a lower interest rate and an extended maturity
date. Additionally, the deferral of covenants for the first twelve
months enables senior management to stay focused on executing our
business plan," said Vern Hanzlik, president and CEO of Qumu.
The foregoing description of the credit agreement does not
purport to be complete and is qualified in its entirety by
reference to the full text of the Credit Agreement, which is
included as Exhibit 10.1 to the Form 8-K to be filed by the
Company.
About Qumu Corporation
Qumu (NASDAQ: QUMU) helps the world's largest companies realize
the value of putting video to work for their digital workforce.
Organizations use Qumu software to create, manage and share
video—live streaming and on demand—turning video into an always-on
resource and connecting thousands of stakeholders across a single
enterprise.
About ESW Capital, LLC
Based in Austin, Texas, Enterprise Software (ESW) Capital has
honed a finely-tuned methodology focused on investing in,
strengthening, and growing mature business software companies. ESW
and its affiliated companies have been in the enterprise software
space since 1988, and the group includes notable brands such as
Aurea, Trilogy, Versata, and Ignite Technologies. For more
information, visit www.eswcapital.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180116005987/en/
Qumu Investor ContactQumu CorporationDave Ristow,
+1-612-638-9045Chief Financial OfficerDave.Ristow@qumu.comorESW
Media ContactESW CapitalNeeraj Gupta, +1-512-589-2202Head of
Corporate Development/M&Aneeraj@eswcapital.com
Qumu (NASDAQ:QUMU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Qumu (NASDAQ:QUMU)
Historical Stock Chart
From Sep 2023 to Sep 2024