NEW YORK, Feb. 26, 2019 /PRNewswire/ -- Pareteum
Corporation (NASDAQ: TEUM), a rapidly growing global cloud software
communications platform company with a mission to connect every
person and every(thing)™, today announced that it has closed a
US$50 million committed senior
secured credit facility with Post Road Group to enable rapid growth
of operations domestically, and abroad, via targeted mergers and
acquisitions.
Pareteum Executive Chairman and Principal Executive Officer
Hal Turner commented, "During 2018,
we showed our ability to convert our contractual revenue backlog
into tangible results. This financing gives us a new currency with
which to support our aggressive market consolidation through
accretive acquisitions and organic growth strategy and improves
leverage in the business to respect the value that management
places on equity. The facility will allow us to continue on our
current growth trajectory in 2019 and the future."
Michael Bogdan, Managing Partner
of Post Road Group added: "We are excited to become Pareteum's
capital partners during its next phase of growth and development.
The strength of Pareteum's combined capabilities after its recent
acquisitions creates a company with significant scale and
international presence to drive further consolidation in this
industry."
The credit facility was led by Post Road Group and is a
milestone transaction for Pareteum's mission to connect every
person and every(thing)™. The credit facility provides
financing secured through Pareteum's existing recurring revenue
streams from its software as a service platform, as well as its
growing intellectual property portfolio. The transaction enables
Pareteum to continue to demonstrate its ability to grow revenues on
an organic as well as inorganic basis, globally.
Approximately $11 million of the
initial draw will be used to repay the debt from Fortress Credit
Corp. assumed in the iPass transaction. Remaining terms of the
transaction are disclosed in Pareteum's regulatory filings.
About Pareteum Corporation:
Millions of people
and devices are connected around the world using Pareteum's Global
Cloud Communications Platform, enhancing their mobile experience.
Pareteum unleashes the power of applications and mobile services,
bringing secure, ubiquitous, scalable, and seamlessly available
voice, video, SMS/text messaging, and data, media and
content enablement to our customers, making worldwide
communications services easily and economically accessible to
everyone. By harnessing the value of our cloud communications
platform, Pareteum serves enterprises, communications service
providers, early stage innovators, developers, IoT, and
telecommunications infrastructure providers Pareteum envisions a
new mobile communications experience imagining what will be, and
delivering now. Pareteum currently has offices in
North America, South America, Spain, Bahrain, Singapore, Indonesia, Germany, Belgium, United
Kingdom, Russia, and the
Netherlands. For more information please visit:
www.pareteum.com.
About Post Road Group:
Post Road Group is a private
investment firm located in Stamford,
Connecticut. The firm deploys three complementary
strategies: Corporate Special Opportunity Investing, Multi-family
Ownership, and Real Estate Finance. Since its founding in 2015,
Post Road Group has completed over $750
million of investments.
Post Road's Special Opportunity Fund I invests in middle-market
private debt and equity investments, with a focus on the
telecommunications, media and technology ("TMT"), business service,
and healthcare service industries. The firm provides companies with
flexible capital for strategic acquisitions, organic growth, and
other special situations. Post Road's Multi-family platform
acquires and operates well-located multi-family properties
nationwide, with a focus on attractive in-place cash flow and the
ability to create value through repositioning. The firm's Real
Estate Finance platform provides bridge, mezzanine and preferred
equity financing solutions to real estate operators nationwide
seeking fast and flexible capital.
Contractual Revenue Backlog Definition:
Contractual Revenue Backlog, or just Backlog, a Non-GAAP measure,
is measured on a forward looking 36-month snapshot view monthly,
and is generated by each of the Company's Managed Services, Global
Software Defined Cloud, and Application Exchange & Developer's
Platform customers. The Pareteum multi-year Software-as-a-Service
agreements include service establishment and implementation fees,
guaranteed minimum monthly recurring fees, as well as contractually
scheduled subscribers, in some cases including subscriber usage,
during the term of the agreement, and, their resulting monthly
contractual revenue. There can be no assurances that we reach the
total contract revenue backlog. Timing of revenue recognition may
vary from actual results.
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.
Pareteum Investor Relations Contacts:
Ted O'Donnell
Chief Financial Officer
+1 212 984 1096
InvestorRelations@pareteum.com
Stephen Hart
Hayden IR
+1 917 658 7878
Carrie Howes
Rayleigh Capital
European- Global IR
+1 416 837 0075
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SOURCE Pareteum Corporation