NowVertical Group, a data and AI solutions provider, and certain of its affiliates have entered into a senior secured facilities agreement with HSBC UK Bank as arranger, original lender and agent.
Pursuant to the facilities agreement, NowVertical UK and NowVertical Group, as borrowers, have access to credit facilities of up to $18 million which may be increased by up to an additional $8 million upon the approval of HSBC, for total credit of up to $26 million.
“This financing agreement is truly transformational for NowVertical,” Sandeep Mendiratta, CEO of NowVertical, said. “It simplifies our capital structure by consolidating debt previously spread across multiple lenders into a single, long-term facility with significantly improved terms. This provides immediate access to capital to fuel our organic growth under the ‘one brand, one business’ strategy, while also positioning us to pursue targeted, strategic acquisitions. Importantly, the facilities give us the flexibility to renegotiate or fully retire our existing convertible loan, materially reducing our cost of capital and preserving our cash position. Combined with a shift from short-term to long-term debt, this strengthens our balance sheet and allows us to operate with greater agility. HSBC’s support reflects the institutional confidence we’ve unlocked by evolving into a single, integrated business, providing enhanced capital access and a stronger foundation for scalable, strategic growth.”
“We are pleased to support NowVertical’s next phase of growth,” Chris Winter, senior corporate relationship director at HSBC, said. “This partnership underscores our confidence in NowVertical’s vision and growth strategy.”
In connection with entering into the facilities agreement, NowVertical will use amounts available under the facilities to prepay certain existing term debt, including obligations to TD Bank and Export Development Canada. The obligations of the borrowers under the facilities have been guaranteed by NowVertical and certain of NowVertical’s subsidiaries, including NowVertical UK Limited, NowVertical UK Holdings Limited, Acrotrend Solutions Limited, NowVertical Group, Inc. and Resonant Analytics, and security granted by the company and the guarantors, including: a pledge of all of the issued and outstanding shares of each of the material Guarantors and a security interest in substantially all of the assets of the company and certain of the guarantors.
NowVertical worked with Fort Capital Partners as its advisor on this transaction.
