Fusion, a provider of cloud services, announced that the company has completed a debt refinancing that includes a new senior secured credit facility with Opus Bank. This refinancing provides Fusion with a significantly lower cost of debt while simultaneously expanding the Company’s access to growth capital, as part of the company’s multi-year strategic plan to achieve greater scale primarily through acquisitions.

Debt Refinancing Highlights

  • On August 28, 2015, a wholly-owned subsidiary of Fusion entered into a$40.0 million senior secured credit facility with Opus Bank, consisting of a $15.0 million, four-year revolver and a $25.0 million, five-year term loan.
  • Tiered interest pricing tied to senior debt leverage ratio, with initial pricing of 4.5% for borrowings from Opus as compared to the 11.15% weighted average rate paid under the company’s existing facility.
  • Simultaneously retired a portion of the company’s existing senior Notes through a combination of $12.0 million in borrowings under the Opus facility at an interest rate of 4.5% and from the sale of $9.0 million of Series F notes to two of the company’s existing lenders thereunder at an interest rate of 10.8%
  • Repriced the remainder of the company’s existing notes at 10.8% versus 11.15% previously annual interest expense savings of approximately $1.0 million, excluding interest expense for incremental capital when drawn.
  • An improvement of 3.15 percentage points in the company’s blended cost of debt, to 8.0% once amounts under the Opus facility are fully drawn.

Matthew Rosen, Fusion’s chief executive officer, commented, “We are proud to announce our new credit facility with Opus, a leading commercial bank, as it represents a key milestone for us in optimizing our capital structure. This new facility, together with the increased commitments at a reduced interest rate from our existing debt providers Praesidian Capital and United Insurance, demonstrates our lenders’ high level of confidence in Fusion’s strategy and track record of significant growth through efficient deployment of our capital. We wish to thank our lenders for their strong support as we continue to execute our growth strategy.”