Nxt-ID
(Nasdaq: $NXTD) Announces $16 million Long-term Debt Refinancing
MELBOURNE, Florida, May 29, 2018 – (Investorideas.com Newswire) Nxt-ID,
Inc. (NASDAQ: NXTD) (the “Company”) today announced the closing of a new $16 million
senior secured term loan due 2023 (the “Term Loan”) through Sagard Credit
Partners LP (“SCP”). The Company will use the proceeds from the Term Loan
to refinance its existing revolving loan facility and to pay for accrued
interest and costs associated with the refinancing. In addition, the Term Loan
proceeds will also provide ongoing working capital, funds for future capital
expenditures, and capital for general corporate purposes.
Key features
of the Term Loan include:
·
Interest rate
of LIBOR + 9.5%, resulting in a savings in annual interest expense of
approximately $2 million a year as compared to the terms and conditions of the
previous revolving loan facility and based on current interest rates;
·
Maturity date
of May 24, 2023;
·
No mandatory debt
amortization
·
Issuance of two Common Stock
Purchase Warrants to the Lender. Each
Warrant is exercisable for an aggregate of 244,081 shares of the Company’s
Common Stock. Each Warrant will be exercisable beginning on May 24, 2018, and
will be exercisable for a period of five years. The exercise price per Warrant
Share, is $3.90 for the first Warrant and $4.88 for the second Warrant.
“This
transaction significantly lowers our interest rate which will significantly increase
our cash flow,” said the Company’s Chief Executive Officer, Gino Pereira. “It provides
stability to our balance sheet and improves our overall financial position,
which will help serve as a catalyst for future growth. This is a positive step
forward for the Company.”
The
transaction replaces the Company’s existing revolving loan facility. The
transaction was financed by SCP, a Canadian private credit firm which provides direct credit financing to public and
private middle market companies across Canada and the U.S., financed the transaction.
“We are very
pleased to work with NXT-ID management on this refinancing transaction,” said
Mustafa Humayun of SCP. “We look forward to fostering a long and mutually
beneficial relationship with the company and supporting potential future growth
needs.”
About
Sagard Credit Partners:
SCP provides direct credit financing to public and private middle market companies across Canada and the U.S. SCP works with companies to craft solutions tailored to their unique financing needs, including term loans, notes, debenture financing, and other bespoke solutions and can provide certainty on terms, structure and execution. SCP has a long-term outlook and seeks to build lasting relationships with its investors as well as the companies in which it deploys capital. SCP is sponsored by Sagard Holdings ULC, an investment platform that invests in equity and debt capital of middle market companies in the US and Canada. For more information on SCP please visit our website http://www.sagardholdings.com/credit-partners/.
SCP provides direct credit financing to public and private middle market companies across Canada and the U.S. SCP works with companies to craft solutions tailored to their unique financing needs, including term loans, notes, debenture financing, and other bespoke solutions and can provide certainty on terms, structure and execution. SCP has a long-term outlook and seeks to build lasting relationships with its investors as well as the companies in which it deploys capital. SCP is sponsored by Sagard Holdings ULC, an investment platform that invests in equity and debt capital of middle market companies in the US and Canada. For more information on SCP please visit our website http://www.sagardholdings.com/credit-partners/.
About
NXT- ID, Inc.
NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform
of technology products and services that enable the Internet of Things (IoT). With
extensive experience in access control, biometric and behavior-metric identity
verification, security and privacy, encryption and data protection, payments,
miniaturization and sensor technologies, NXT-ID develops and markets
groundbreaking solutions for payment and IoT applications. Its industry-leading
technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers'
mobile platforms, the Wocket™, a next-generation smart wallet and the Flye, a digital credit card developed in collaboration
with WorldVentures.
NXT-ID includes mobile and IoT-related
subsidiaries: LogicMark, LLC, a
manufacturer and distributor of non-monitored and monitored personal emergency
response systems ("PERS") sold through dealers/distributors and the
United States Department of Veterans Affairs and Fit Pay, Inc., a proprietary technology platform that delivers end-to-end
solutions to device manufacturers for contactless payment capabilities,
credential management, authentication and other secure services within the IoT
ecosystem. Learn more about
NXT-ID at www.nxt-id.com. FitPay and the FitPay Payment Platform are the sole
property of Fit Pay, Inc. For NXT-ID
Inc. corporate information contact: info@nxt-id.com
Forward-Looking
Statements for NXT-ID: This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain
risks and uncertainties. Forward-looking statements include statements herein
with respect to the successful execution of the Company's business strategy.
The Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish and
maintain the proprietary nature of our technology through the patent process,
as well as our ability to possibly license from others patents and patent
applications necessary to develop products; the availability of financing; the
Company's ability to implement its long range business plan for various
applications of its technology; the Company's ability to enter into agreements
with any necessary marketing and/or distribution partners; the impact of
competition, the obtaining and maintenance of any necessary regulatory
clearances applicable to applications of the Company's technology; and
management of growth and other risks and uncertainties that may be detailed
from time to time in the Company's reports filed with the Securities and
Exchange Commission.
Media Contacts:
Chris Orlando
+1-760-468-7273
D. Van Zant
+1-800-665-0411
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