Company reports closing of new $75 million term loan and new
revolving credit line of up to $90 million
Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE:
RBT), a leading digital marketplace for waste and recycling and
provider of innovative software-based products for businesses and
governments worldwide, today announced the completion of its final
key strategic finance goal, as previously discussed on the
Company’s earnings calls since the fourth quarter of 2022. The new
$75 million term loan and revolving credit line of up to $90
million were secured through Avenue Sustainable Solutions and
MidCap Financial, respectively, and provide significantly enhanced
liquidity to the Company. Rubicon is confident that it has secured
the required financing to take the Company through profitability
and beyond, and remains on track to achieve its overarching goals
of being profitable by the end of this year and generating positive
Adjusted EBITDA for the fourth quarter of 2023, as well as for the
full year 2024.
Rubicon’s focus since the fourth quarter of 2022 has been to
improve its liquidity position and accelerate its progress to
profitability through a number of initiatives designed to improve
margins, reduce operating costs, and increase the Company’s
financial strength and flexibility.
“We are excited to announce that we have achieved our final key
strategic finance goal for 2023,” said Kevin Schubert, CFO of
Rubicon. “By securing this financing, we have strengthened our
financial position and can now focus solely on the core operations
of our business and chart our next phase of growth. I would like to
thank all our financial partners for their trust in and support of
the Company and I look forward to an exciting future for
Rubicon.”
"Avenue Capital Group is pleased to make this investment as we
believe Rubicon is poised to be a leader in the next generation of
the circular economy," said John Larkin, Head of Impact Investments
and Co-manager of the Avenue Sustainable Solutions Fund. "There are
few companies in the waste space with such advanced and
differentiated technology. We are excited to back Rubicon’s ability
to service the growing corporate demand for improvements in
recycling and landfill diversion and their vision for the future of
waste."
About Rubicon
Rubicon Technologies, Inc. (NYSE: RBT) is a digital marketplace
for waste and recycling, and provider of innovative software-based
products for businesses and governments worldwide. Striving to
create a new industry standard by using technology to drive
environmental innovation, the Company helps turn businesses into
more sustainable enterprises, and neighborhoods into greener and
smarter places to live and work. Rubicon’s mission is to end waste.
It helps its partners find economic value in their waste streams
and confidently execute on their sustainability goals. To learn
more, visit rubicon.com.
About Avenue Sustainable Solutions, L.P.
The Avenue Sustainable Solutions Fund, L.P. seeks to provide
creative financing solutions to high-growth companies that can
demonstrate a measurable, positive environmental outcome alongside
competitive financial returns. For additional information on Avenue
Capital Group, which is a global investment firm with assets
estimated to be approximately $12.5 billion as of April 30, 2023,
please visit www.avenuecapital.com.
About MidCap Financial
MidCap Financial is a middle-market focused, specialty finance
firm that provides senior debt solutions to companies across all
industries. As of March 31, 2023, MidCap Financial provides
administrative or other services for over $46 billion of
commitments*. MidCap Financial is managed by Apollo Capital
Management, L.P., a subsidiary of Apollo Global Management, Inc,
pursuant to an investment management agreement. Apollo had assets
under management of approximately $598 billion as of March 31,
2023, in credit, private equity and real assets funds. For more
information about MidCap Financial, please visit
http://www.midcapfinancial.com. For more information about Apollo,
please visit http://www.apollo.com.
*Including commitments managed by MidCap Financial Services
Capital Management LLC, a registered investment adviser, as
reported under Item 5.F on Part 1 of its Form ADV.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995 and within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of present or historical fact
included in this press release, are forward-looking statements.
When used in this press release, the words “could,” “should,”
“will,” “may,” “believe,” “anticipate,” “intend,” “estimate,”
“expect,” “project,” the negative of such terms and other similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Such forward-looking statements are subject to
risks, uncertainties, and other factors which could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These forward-looking statements
are based upon current expectations, estimates, projections, and
assumptions that, while considered reasonable by Rubicon and its
management, are inherently uncertain; factors that may cause actual
results to differ materially from current expectations include, but
are not limited to: 1) the outcome of any legal proceedings that
may be instituted against Rubicon or others following the closing
of the business combination; 2) Rubicon’s ability to meet the New
York Stock Exchange’s continued listing standards following the
consummation of the business combination; 3) the risk that the
business combination disrupts current or future plans and
operations of Rubicon as a result of consummation of the business
combination; 4) the ability to recognize the anticipated benefits
of the business combination, which may be affected by, among other
things, the ability of the combined company to grow and manage
growth profitably, maintain relationships with customers and
suppliers and retain its management and key employees; 5) continued
costs related to the business combination; 6) changes in applicable
laws or regulations; 7) the possibility that Rubicon may be
adversely affected by other economic, business and/or competitive
factors, including the lingering impacts of the COVID-19 pandemic,
geopolitical conflicts, such as the conflict between Russia and
Ukraine, the effects of inflation and potential recessionary
conditions; 8) Rubicon’s execution of anticipated operational
efficiency initiatives, cost reduction measures and financing
arrangements; and 9) other risks and uncertainties set forth in the
sections entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in the Company’s Annual Report on Form
10-K, Registration Statement on Form S-1, as amended, filed with
the SEC, and other documents Rubicon has filed, with the SEC.
Although Rubicon believes the expectations reflected in the
forward-looking statements are reasonable, nothing in this press
release should be regarded as a representation by any person that
the forward-looking statements set forth herein will be achieved or
that any of the contemplated results of such forward looking
statements will be achieved. There may be additional risks that
Rubicon presently does not know of or that Rubicon currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements, many
of which are beyond Rubicon’s control. You should not place undue
reliance on forward-looking statements, which speak only as of the
date they are made. Rubicon does not undertake, and expressly
disclaims any duty to update these forward-looking statements,
except as otherwise required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230608005207/en/
Investor Contact: Sioban Hickie, ICR, Inc.
rubiconIR@icrinc.com
Media Contact: Dan Sampson Chief Marketing &
Corporate Communications Officer dan.sampson@rubicon.com
RubiconPR@icrinc.com
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