Rimini Street closes $90 million term loan to replace preferred stock

Chicago, July 8 – Rimini Street, Inc. closed a $90 million term loan with Capital One, NA as lead arranger and bookrunner to replace the company’s more expensive series A preferred stock, according to a press release on Thursday.

Loan will bear interest at Libor plus 175 basis points to 250 bps. The margin is subject to leverage-based step-downs.

The credit facility contains some financial covenants, including maintenance of a minimum fixed-charge coverage ratio, a total leverage ratio below a threshold and a minimum liquidity of $20 million in U.S. cash.

Annual minimum principal amortization payments across the five-year term will be 5%, 5%, 7.5%, 7.5%, 10%, with the remaining balance due at the end of the term.

The loans under the credit facility contain affirmative and negative covenants customary for transactions of this type, and there is no prepayment premium during the term of the loan.

Proceeds will be used to buy back the remaining series A preferred stock for $88 million. The company expects the first year interest and accretion of discount to be about $3 million compared to the 2020 full year cost of the series A preferred stock of $27 million, yielding a savings of roughly $24 million.

The provider of enterprise software support is based in Las Vegas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.