Software company Evolving Systems Holdings entered into a term loan facility agreement with East West Bank as lender in the amount of $4.73 million.
The purpose of the loan facility is to provide funds in connection with the company’s entry into a share purchase agreement with Lumata Holdings and Francisco Partners III (Cayman). The company agreed to acquire all of the issued and outstanding shares of four Lumata Holdings subsidiaries in exchange for a cash payment totaling €4 million ($4.7 million).
The loan facility requires the company to make monthly principal payments of approximately $131,400 commencing July 31, 2018 and interest at the greater of 3.5% or the variable rate of interest that appears in the Wall Street Journal on a monthly measurement date plus in either case 1.5%.
Evolving Systems is a provider of software solutions to the wireless, wireline and cable markets.