Trakopolis entered into a new $3.5 million secured credit facility with Silicon Valley Bank. The credit facility consists of a $1.5 million 36-month term loan and an up to $2 million accounts receivable line of credit
The term loan bears interest at a rate of U.S. prime plus 1.5%, and the revolver bears interest at a rate ranging from U.S. prime plus 1.75% to prime plus 2.25% based on certain operating metrics. Proceeds from the term loan will be used to prepay and retire the company’s outstanding indebtedness with B.E.S.T. Funds. The revolving line will be used to fund the company’s growth strategy.
“Reducing our cost of borrowing to under 7% based on today’s rates, with no dilutive instruments attached, and adding a revolving line of credit provides the company with a debt facility that is aligned with our focus on recurring revenue,” said Trakopolis’ CFO, Richard Clarke.
Calgary, AB-based Trakopolis is a Software-as-a-Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers.
