Daily News: June 6, 2012

Avidbank Commits to $3MM Asset-Based Loan for USA Technologies

USA Technologies, Inc. (USAT) announced that it has received a commitment letter from Avidbank Corporate Finance to establish a $3 million, one-year secured line of credit. The credit line is part of USA Technologies’ strategy to assist in the accelerated transition of cashless payment systems and services in the unattended small-ticket, retail market through its JumpStart program.

“The Avidbank credit line commitment letter is another important milestone in USAT’s growth story,” stated Stephen P. Herbert, USA Technologies chairman and CEO. “This financing option would not only provide flexibility to fund important growth initiatives like our JumpStart program, but it would enhance our ability to access capital in a way USAT has not been able to do in the past. Looking forward, it represents part of our plan to continue to grow the company while maintaining a healthy balance sheet. We believe that the progress we have made in improving our financial performance, particularly from increased connections as a result of our JumpStart program, have been critical catalysts in getting USAT to this stage.

“In addition, we believe that the cash flows from our ePort Connect(R) service model are an attractive financing asset that will only continue to grow as we add more connections and added value to those connections for our customers,” added Herbert. “We are extremely pleased that Avidbank has chosen to provide this financial facility commitment and we look forward to a strong relationship as USAT becomes a much larger company.”

USAT anticipates closing the line of credit with Avidbank within 30 days. The amount of funds to be made available to USAT under the line of credit would be based upon a percentage of eligible accounts receivable and license and transaction fees to be specified in the loan agreement. The closing of the line of credit transaction is subject to various terms and conditions set forth in the commitment letter, including the execution and delivery of a loan agreement satisfactory to the parties.

Avidbank Corporate Finance EVP, Mike Hansen stated, “I am pleased we were able to put this facility in place for USA Technologies. They are a good example of companies we like to work with as they are a leader in an expanding marketplace and continue to demonstrate impressive growth. We look forward to a long relationship with them.”

USA Technologies is a provider in the networking of wireless non-cash transactions, associated financial/network services and energy management.

Avidbank is a provider of financial solutions and service. It specializes in commercial and industrial, corporate finance, technology and asset-based lending, real estate construction, commercial real estate lending and real estate bridge financing.