Boardwalktech Software, a digital ledger platform and enterprise software solutions company, secured a three-year, $4 million line of credit facility with Celtic Bank for growth needs, including the expansion of recurring revenue. The company expects to use proceeds of the facility for sales and marketing expenditures, working capital requirements, and to enhance its balance sheet to drive new business.
Key terms of the facility include:
- A $4 million total facility, up to 60% of trailing 12-month annual recurring revenue.
- An interest-only period through the initial three-year term. The facility may be extended by both parties.
- A 12.5% initial interest rate, based on Prime (Wall Street Journal) plus 4%.
- No warrants, conversions or loan bonuses included.
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“After entertaining several offers, during a challenging financing environment, we are very pleased to partner with Celtic Bank to provide us the funds and flexibility to address working capital needs for growth. While the company continues to progress towards cash-based breakeven, this LOC facility provides Boardwalktech with the flexibility to achieve its growth potential without relying upon market conditions nor equity sources,” Andrew T. Duncan, CEO of Boardwalktech, said. “Customer demand for our Unity Central, Velocity and Digital Ledger products necessitate both available sales and marketing resources to monetize those recurring revenue opportunities while putting sufficient cash on our balance sheet to ease due diligence needs during such engagements. As such, we look forward to announcements reflecting that progress.”
