RMG Networks Completes Senior Credit Facility Amendment; Pays Off Junior Credit Facility & Repays All but $8 Million of Senio...
16 November 2013 - 7:30AM
Marketwired
RMG Networks Completes Senior Credit Facility Amendment; Pays Off
Junior Credit Facility and Repays All but $8 Million of Senior Debt
Lowers Effective Interest Rate on Debt 400 Basis Points to 8%;
Amends Covenants and Defers All Scheduled Principal Payments Until
2018 Maturity; Saves an Estimated Over $5 Million in Debt Service
in 2014
DALLAS, TX--(Marketwired - Nov 15, 2013) - RMG Networks
Holding Corporation, or RMG Networks, (NASDAQ: RMGN) a leading
provider of technology-driven video advertising and visual
communications solutions, announced it has completed a Second
Amendment to its senior credit facility and repaid all but $8
million of its existing debt. The amended term loan facility bears
annual interest at a Base Rate plus 6.25% or at LIBOR plus 7.5%
(currently 8% including LIBOR floor), at the election of the
borrower. This significantly reduces the company's effective
interest rate on borrowings from approximately 12%. Consistent with
the Company's commitment to de-levering, the amendment also resets
financial and operating covenants providing the company with
substantial operating flexibility, eliminates quarterly principal
amortization payments, and defers the entire unpaid portion of the
facility until its maturity on April 19, 2018.
Combined with the $10 million of principal repaid in connection
with the company's follow-on equity offering in August, these most
recent debt repayments and the credit facility amendment are
expected to create interest and principal repayment savings in 2014
of over $5 million.
Garry McGuire, CEO of RMG Networks, commented, "We want to
extend our thanks to our new administrative agent and continuing
lender, Comvest Capital, for providing us with this flexible
financing. The facility's lower borrowing rate reduces our cost of
capital significantly, and the amendments to our covenants provide
us with the cushion we need to continue to invest in the growth of
our business. De-levering our balance sheet was an important
commitment we made to our shareholders, and our debt level now
stands at $8.0 million, a more than reasonable level for a company
at this point in our growth trajectory. Our focus remains on
execution as we pursue our growth strategy to scale both
organically and through selected acquisitions and to continue our
leadership in the ad-tech-video media marketplace."
ABOUT RMG NETWORKS RMG Networks (NASDAQ: RMGN) is a
global leader in the digital signage media industry. The
company delivers digital signage media solutions for corporate
networks, consumer networks, and advertising networks, including
nearly 70% of the Fortune 500. RMG operates an Advertising Media
business unit that sells digital video advertising across a network
of over 200,000 display screens, reaching 100 million consumers
each month. RMG also operates an Enterprise Solutions business unit
that provides digital signage data visualization solutions for a
variety of application areas including contact centers, supply
chain, employee communications, hospitality, higher education,
financial services, healthcare and retail. The company is
headquartered in Dallas, Texas with offices in the United States,
United Kingdom, China, India, Singapore and the U.A.E. For more
information, visit http://www.rmgnetworks.com.
FORWARD LOOKING STATEMENT This press release contains
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words such
as: "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Examples of forward-looking statements include, among others,
statements we make regarding guidance relating to future financial
performance, expected operating results, such as revenue growth,
and efforts to grow our business.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: the company's success in
retaining or recruiting, or changes required in, its management and
other key personnel; the limited liquidity and trading volume of
the company's securities; Reach Media Group's ("RMG") history of
incurring significant net losses and limited operating history; the
competitive environment in the advertising markets in which the
company operates; the risk that the anticipated benefits of the
combination of RMG or Symon Holdings Corporation, or of other
acquisitions that the company may complete, may not be fully
realized; the risk that any projections, including earnings,
revenues, margins or any other financial items are not realized;
changing legislation and regulatory environments; business
development activities, including the company's ability to contract
with, and retain, customers on attractive terms; the general
volatility of the market price of the company's common stock; risks
and costs associated with regulation of corporate governance and
disclosure standards (including pursuant to Section 404 of the
Sarbanes-Oxley Act); and general economic conditions.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. We undertake no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Contact: For RMG Networks Holding Corporation Investor
Carolyn M. Capaccio 212-838-3777 Email Contact or
Media TallGrass Public Relations Shawn Roberts
415-305-6456 Email Contact
Rmg Networks Holding Corp. (delisted) (NASDAQ:RMGN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Rmg Networks Holding Corp. (delisted) (NASDAQ:RMGN)
Historical Stock Chart
From Jul 2023 to Jul 2024