Business
Rimini Street Completes $90 Million Commercial Bank Financing and Fully Redeems Remaining Series A Preferred Stock
Fifth Third Bank, National Association joins as lender with Capital One, National Association, as agent and lender, to provide capital at LIBOR + 1.75% -
About this update from Rimini Street, Inc.
[{"type":"text","content":"\nFifth Third Bank, National Association joins as lender with Capital One, National Association, as agent and lender, to provide capital at LIBOR + 1.75% - 2.50%; results in $24 million finance cost savings for the first year of the new credit facility\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 closed on the previously announced $90 million five-year senior secured credit facility (the “Credit Facility”) with approximately $88 million of the borrowings used for the 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 were completed on July 20, 2021.\n\nFifth Third Bank Joins as Lender\n\nThe previously announced credit agreement entered into with Capital One, National Association on July 2, 2021, for a total of $90 million was amended on July 20, 2021, to, among other things, add Fifth Third Bank, National Association as a lender providing $30 million, with Capital One as a lender providing the remaining $60 million of the $90 million Credit Facility. Both Capital One and Fifth Third Bank are top 15 U.S. banks as measured by total assets.\n\n“We are pleased to partner alongside Capital One to support Rimini Street’s new financing package and build a relationship with a leading technology services provider,” said Glen Mastey, managing director, Fifth Third Bank Technology, Media and Telecom Banking.\n\nKey Financing Terms\n\nLoans made under the five-year Credit Facility 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 co...