Dialogic Eliminates Debt Covenants, Secures New Financing
Dialogic announced that it entered into amendments to its credit agreements with both Tennenbaum Capital Partners (TCP) and Wells Fargo Foothill Canada ULC.
As part of the amendments, TCP and WFFC agreed to eliminate all financial covenants under the credit agreements through 2013. Dialogic also secured an additional $4.5 million in debt financing from TCP. The proceeds of the financing will be used to fund initiatives that will save an estimated $12 million to $14 million of operating expense in 2013 as well as to accelerate investment in sales and marketing activities.
“We are pleased to have completed this deal for growth capital with TCP,” said Kevin Cook, president and CEO of Dialogic. “This financing is another step forward for the company as we position Dialogic to better serve its service provider and Application Development partners while building long-term value for our shareholders. Separately, by eliminating the financial covenants though 2013, the company has the financial flexibility to enable our key strategic initiatives to build momentum in the marketplace.”
Dialogic develops products and technologies that enable operators to provide an enhanced mobile experience.