Quisitive is a premier Microsoft solutions provider that helps enterprise organizations move, operate, and innovate in the Microsoft cloud
FREMONT, CA: Quisitive Technology Solutions ("Quisitive" or the "Company"), a premier Microsoft solutions provider that helps customers navigate the ever-changing climate that their business relies upon, announced the successful completion of its debt consolidation initiatives according to the terms of a loan agreement entered into between the Company, certain material subsidiaries of the Company, as guarantors, and a leading Canadian Schedule I Chartered Bank (the "Bank") dated August 10, 2020 (the "Loan Agreement").
The Loan Agreement provides for a five-year term loan of US$16,133,000 (the "Term Loan") and a revolving operating line of credit of up to US$5,000,000 (the "Operating Line"), with all debts, liabilities, and obligations of the company and guarantors under the Term Loan and Operating Line collaterally secured by a first-ranking security interest in all of the present and future undertaking, property, and assets of the company and its material subsidiaries. The Term Loan capital was used to refinance and retire the existing debt obligations of the Company with Gideon, and the lenders that advanced funds to the Company in 2019 in connection with the acquisitions of Corporate Renaissance Group and Menlo Technologies.
Interest on the Term Loan is payable monthly, based on a price grid which ranges, depending on the Company's total senior debt to EBITDA ratio, from the Bank's prime rate plus 1.5 percent to the Bank's prime rate plus 2.25 percent, with advances repayable in monthly installments of principal plus interest with a final payment of any amounts then outstanding due at maturity. The Operating Line is repayable with monthly interest consistent with the Term Loan rates. The Loan Agreement will be filed under the Company's issuer profile on SEDAR.
"This debt consolidation strengthens our financial position and significantly lowers our cost of capital," stated Mike Reinhart, Chief Executive Officer of Quisitive. "We welcome this growing partnership with this leading Canadian financial institution that includes the debt consolidation as well as the key role this bank played in our recent bought deal financing."
The Company will realize a reduction of annual interest expenses of more than US$1.5 million as a result of this debt consolidation and the recent note conversion previously announced on July 2, 2020.