nFinanSe amends terms of $15.5 million credit facility

By Devika Patel

Knoxville, Tenn., Dec. 3 - nFinanSe Inc. amended the terms of a $15.5 million credit facility that settled in June, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The amendment was entered into with investors Ballyshannon Partners, LP, Ballyshannon Family Partnership, LP, Midsummer Investment Ltd., Porter Partners, LP and Trellus Partners, LP.

The new agreement establishes a sub-commitment of $3.4 million, under which each lender may advance funds that may be used by the company for working capital expenditures, working capital needs and other general corporate purposes.

The loans will accrue interest at 16% and may be repaid and re-borrowed. The loans will be repaid after all other loans under the credit facility have been repaid in full.

The credit facility matures in one year, but may be extended for an additional six months upon the satisfaction of certain conditions.

The maximum commitment may be increased to up to $20 million, and additional lenders may be added.

As of Dec. 2, the company had drawn $850,000 under the credit facility.

The investors received warrants for 175,000 common shares, which are exercisable at $2.00.

The warrants expire after one year, but the maturity may be extended to 18 months.

Based in Bradenton, Fla., nFinanSe is a financial services company and provides stored value and prepaid cards.

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