Wi2Wi Corporation Announces a US$2 Million Revolving Credit Facility
TORONTO, ON / ACCESSWIRE / March 28, 2016 /Wi2Wi Corporation ("Wi2Wi" or the "Company"), is pleased to announce that on March 18, 2016 it entered into a new US$2 million revolving credit facility ("Facility") with Wells Fargo Bank, National Association ("Wells Fargo"), which will become available when the following conditions are met:
- Wells Fargo shall have received the Borrower's unqualified audited financial statements for the fiscal year ending December 31, 2015.
- Wells Fargo shall have conducted a satisfactory field exam examination.
- No event of default has occurred.
- The Company has complied with the financial covenants for the fiscal quarters ending December 31, 2015 and March 31, 2016.
The interest on the Facility will be LIBOR plus 3%, and has an annual standby charge of 0.25%, charged quarterly. The Company has granted a security interest to Wells Fargo in all the property of the Company.
The Facility has the following covenants:
- Balance sheet leverage of less than or equal to 3, defined as total liabilities divided by tangible net worth tested on a quarterly basis; and
- Minimum net income greater than one dollar, tested on a quarterly basis on a rolling twelve month basis.
While the above conditions are being complied with, the Company has arranged as part of the Facility a line of credit of US$500,000 which will be fully collateralized by cash which will be deposited in a restricted account with Wells Fargo to repay any borrowings under the Facility. The cash collateral will be returned to Company once the conditions are met for the Facility.
"We are proud to announce this vote of confidence in our business model from such a prestigious institution as Wells Fargo," said Zachariah Mathews, CEO of the Company. "This new credit facility will lower our cost of capital and assist in new product development to address the rapidly growing markets."
For further information, please contact:
President and Chief Executive Officer