Main Street Capital Provides New Facility to Glowpoint
Glowpoint announced it refinanced its existing debt facilities. Main Street Capital provided a new credit facility consisting of a term loan commitment of $11 million and a revolving credit line up to $2 million.
On October 17, 2013, the company received an initial term loan of $9 million and funding of $0.2 million on the revolver. The company may request additional term loans up to $2 million subject to the terms and conditions of the loan agreement and approval by Main Street. The proceeds of the $9.0 million term loan will be used to repay $8.5 million of existing term loans in addition to facility fees and expenses.
The term loan matures on October 17, 2018, with monthly interest payments and quarterly principal payments based on a certain percentage of excess cash flow as defined in the loan agreement.
“We’re very pleased to complete this debt refinancing as it provides the company with additional liquidity and greater financial flexibility,” said David Clark, chief financial officer of Glowpoint.
“Main Street is very excited to be partnering with Glowpoint and its management team. Main Street’s investment philosophy centers around providing capital to established, growing companies that are led by strong management teams and we believe this investment is a great fit for that philosophy. We look forward to our relationship and hope to help the company continue to grow by providing flexible capital as needed,” said Robert Shuford, managing director of Main Street Capital.
Glowpoint provides video collaboration, network and support services to large and mid-sized enterprises to support their unified communications strategies and business goals.