Business
Asure Announces Debt Paydown
Transaction Enhances Liquidity & Financial Flexibility While Reducing Cash Interest AUSTIN, Texas, Sept. 13, 2023 (GLOBE NEWSWIRE) -- Asure Software, Inc.
About this update from Asure Software Inc
[{"type":"text","content":"Transaction Enhances Liquidity & Financial Flexibility While Reducing Cash Interest\nAUSTIN, Texas, Sept. 13, 2023 (GLOBE NEWSWIRE) -- Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, announced it has terminated its Loan and Security Agreement (the “Loan Agreement”) dated September 10, 2021, with Structural Capital Investments III, LP (“Structural” and together with the other lenders that are parties thereto, the “Lenders”), and Ocean II PLO LLC, as administrative and collateral agent for the Lenders (“Agent”), and our secured promissory note (the “Note”) with Agent evidencing our obligations under the Loan Agreement. In connection with the termination, we paid to Agent for the benefit of Lenders an aggregate amount of approximately $30.9 million (the “Payoff Amount”) in full payment of our outstanding obligations under the Loan Agreement and Note. The Payoff Amount represented $30.6 million outstanding of principal and interest on the unpaid principal balance, a prepayment fee in the amount of $0.3 million and an immaterial amount of fees and other expenses due to Agent. “This paydown substantially enhances Asure’s cash flow, is accretive to earnings and creates financial flexibility as we execute our strategy to deliver double-digit organic revenue growth, expand operating margins and invest in people, technology and assets to drive future success”, said Pat Goepel, Chairman and CEO of Asure Software. “Our recent equity offering of 3,333,333 shares of our common stock, along with the exercise of the underwriters’ over-allotment option for an additional 500,000 shares resulted in net proceeds for Asure of an aggregate of approximately $43 million, which enabled us to repay our outstanding obligations to the Lenders and the termination of the Loan Agreement. Asure now has minimal debt leverage, which we believe enables us to opportunistically deploy capital to grow our business and to execute our growth strategy.” About Asure Software, Inc. Asure (Nasdaq: ASUR) is a leading provider of Human Capital Management (“HCM”) software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdicti...