Gail Chiasson, North American Editor
Dallas-based RMG Networks Holding Corporation (RMG Networks), provider of technology-driven visual communications solutions, has entered into a new $7.5 million revolving credit facility with Silicon Valley Bank.
The credit facility has a scheduled maturity date of October 13, 2017.
The credit facility was undrawn at the time of closing, and the company intends to use the new credit facility as needed to finance future growth and meet working capital needs. Availability under the credit facility is tied to a borrowing base formula. Borrowings under the credit facility will bear interest at a floating rate equal to the prime rate plus 1.25% or 2.25% per annum, depending on whether certain conditions are satisfied.
“Securing this low interest, non-dilutive financing strengthens our financial flexibility and provides us access to additional working capital as we continue to execute on organic growth initiatives,” says Robert Michelson, CEO and president of RMG Networks. “We believe our ability to obtain this type of bank financing demonstrates the progress we are making in stabilizing our financial position and returning RMG Networks to recurring EBITDA generation.”
Michelson gave a talk on digital signage content earlier today at the DailyDOOH Digital Investor Conference in New York.
Follow DailyDOOH