Inseego, a global provider of SaaS and mobile broadband solutions for the Internet of Things, entered into a credit agreement with Highbridge Capital Management.

The lenders provided Inseego with a new term loan facility in the principal amount of $48 million with a maturity date of August 23, 2020. The loan will bear interest at a rate per annum equal to LIBOR, but in no event less than 1.00%, plus 7.625%. A portion of the proceeds from the loan was used to repay all amounts outstanding under the company’s previous senior credit agreement due May 8, 2018.

“With the announcement of Inseego’s restructuring plan in June 2017 and the solid progress in our cost reduction efforts to date, we are in a great position to refinance our current short-term credit facility at better overall terms and to materially extend the maturity date,” said Dan Mondor, president and CEO. “The new three-year term loan has a significantly lower interest rate and provides $14.5 million of incremental liquidity to support our overall business objectives.”

As part of the transaction, and included in the $48 million term loan, the company exchanged approximately $14.9 million of the existing convertible notes due 2022 into approximately $11.9 million of the new term loan facility and two million shares of the company’s common stock.

Jonathan Segal, managing director of Highbridge Capital Management, said, “We are supportive of the management team’s strategy to right-size the cost side of the business, accelerate the Company’s growth and increase free cash flow generation. Following the solid progress to date both in cost savings and customer wins, we believe this access to additional capital will provide Inseego the ability to significantly improve its profitability.”