Intersections, a provider of identity risk management and privacy protection services for consumers, completed a new $20 million term loan financing with PEAK6 Investments.

The maturity date of the new credit agreement is April 20, 2021 and quarterly principal payments of $1.2 million commence on September 30, 2019. The initial interest rate is 9.486% per annum, to be adjusted annually on March 31 to 7.75% plus one-year LIBOR. The company used approximately $13.9 million of the proceeds to repay in full the aggregate principal amount outstanding under their prior credit agreement and related interest, prepayment penalties and transaction expenses.

The company expects to use the remainder of the proceeds to accelerate both subscriber acquisition and product development.

In connection with the new credit agreement, PEAK6 purchased, for $1.5 million in cash, a warrant to purchase 1.5 million shares of the company’s common stock.

“Intersections is focused on rebuilding our consumer identity protections services. We have positioned ourselves to expand that business through broader and more diverse distribution channels and through exciting new products such as our artificial intelligence driven product coming to market this summer. This new financing will provide Intersections additional capital and runway to execute our business plan and grow. We are pleased that PEAK6 is becoming our primary credit provider and investing in a warrant to acquire our common stock,” said Johan Roets, Intersections CEO.