U.S. Bank Provides $4MM Tix Corp Secured Term Loan
Tix Corporation, a provider of discount ticketing services, announced it entered into a secured term loan with U.S. Bank for $4 million.
Proceeds from the debt will be used to pay in full its existing note payable to Baker Street Capital L.P. for $3.7 million.
The debt will be repaid over 36 months and bears an interest rate of prime plus 1.25% annually and has no prepayment penalty. The debt is secured by the majority of the assets of the company and its subsidiary and is subject to certain covenants. The remaining proceeds will be used for general working capital purposes.
Mitch Francis, CEO of the company, stated, “We are very pleased to announce the completion of our financing transaction. We have successfully replaced our existing secured note maturing on December 24, 2014 with new Debt carrying a significantly lower interest obligation that also lengthens the maturity of our debt. We considered several alternatives that were available to us and ultimately determined that U.S. Bank’s facility gives our Company the most flexibility and cost savings,” he added.