Wells Fargo Provides Asure Software Facility
Asure Software announced the refinancing of the company’s existing senior debt under a new credit agreement with Wells Fargo Bank. The facility has a new term loan of $15 million and a revolver of $3 million, with an additional uncommitted incremental loan facility of $10 million for future permitted acquisitions.
Proceeds from the new term loan went toward amounts outstanding under the existing loan agreement with Deerpath Funding, which bore an interest rate of 11.5%, plus certain fees and expenses.
With this refinancing, Asure Software will have a more favorable interest rate and lower cash principal repayments.
Borrowings under the credit agreement will initially bear interest at 5% per annum, and future interest rates will be based, at Asure Software’s election, on either LIBOR (subject to a floor of 1%) plus margin of 3% to 4% or a base rate specified in the Credit Agreement (subject to a floor of 2%) plus a margin of 2% to 3%.
Pat Goepel, CEO of Asure Software, commented, “We are thankful for our past partnership with Deerpath and their ongoing support of Asure Software and our growth over the last several months. We appreciate Monroe Capital Advisors and the guidance they provided in the process. Now, we are excited to partner with a premiere banking institution such as Wells Fargo. The refinancing allows us to fuel continued future growth and maintain our focus as an industry leader in delivering Cloud-based SaaS solutions to our clients. ”
Jennifer Crow, Asure’s CFO, added, “This new facility provides a lower cost of debt and greater liquidity and financial flexibility. We are excited about growing our relationship with Wells Fargo and look forward to working with them to execute our continued growth strategy. ”
Austin, TX-headquartered Asure Software offers cloud-based time and labor management and workspace management solutions.