Business
Rimini Street Announces $90 Million Commercial Bank Financing to Fully Redeem Remaining Series A Preferred Stock
Capital One, National Association provides capital at LIBOR + 1.75% - 2.50% to replace Company’s more expensive Series A Preferred stock dividends and costs
About this update from Rimini Street, Inc.
[{"type":"text","content":"\nCapital One, National Association provides capital at LIBOR + 1.75% - 2.50% to replace Company’s more expensive Series A Preferred stock dividends and costs\n\n LAS VEGAS--(BUSINESS WIRE)--\nRimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced it has entered into a definitive agreement for a $90 million senior secured credit facility with approximately $88 million of the borrowings to be used for the full redemption of the remaining Series A Preferred stock and the remainder of the borrowings for related transaction costs and other general corporate purposes. Loan funding and redemption of the Series A Preferred stock are currently expected to occur on July 20, 2021, subject to customary funding conditions.\n\n“Capital One is pleased to lead the recently closed $90 million term loan with Rimini Street, an industry leading technology services provider that is a valued solutions partner to Capital One,” said Tom King, managing director, Capital One Technology, Media and Telecom Banking. “The new financing bolsters Rimini Street’s capital structure and supports the company's strategic plans. The expanded relationship through Capital One’s Technology, Media and Telecom corporate banking group builds upon several years of a successful partnership between the two organizations.”\n\nKey Financing Terms\n\nLoans made under the five-year term loan will bear interest at LIBOR plus a margin ranging from 1.75% to 2.50%. The margin for the credit facility is subject to leverage-based step downs. The credit facility contains certain financial covenants, including maintenance of a minimum fixed charge coverage ratio, a total leverage ratio below a threshold and a minimum liquidity of $20 million in U.S. cash. Annual minimum principal amortization payments across the five-year term will be 5%, 5%, 7.5%, 7.5%, 10%, with the remaining balance due at the end of the term. The loans under the credit facility contain affirmative and negative covenants customary for transactions of this type and there is no prepayment premium during the term of the loan.\n\nFor more information on the terms of the credit agreement please see the Company’s Current Report on SEC Form 8-K, filed July 8, 2...