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BDC Capital Closes $4MM Credit Facility with Marketing Specialist Ackroo

June 24, 2019, 09:00 AM
Filed Under: Industry News

Ackroo Inc., a gift card, and loyalty marketing technology and services provider, announced it has secured $4,000,000 via BDC Capital.  Under the terms of the loan, Ackroo will receive an initial tranche of $3,000,000 on closing plus access to an additional $1,000,000 disbursed should the Company identify another acquisition where these additional funds can be leveraged. 

The loan:

  • Bears a 9.75% interest rate while EBITDA is under $750k per year and will reduce to a low of 7.5% once audited EBITDA is in excess of $1,100,000 per year
  • Requires no principal payments to be made until April 2021 and will be done in the form of an annual excess cash flow sweep.
  • Includes a 2.55% annual royalty on clients acquired with the facility during the term of the loan, excluding the first year.
  • Includes a 0.5% bonus on sale or change of control payment to be made to BDC Capital should the company sell the business during the term of the loan
  • Includes a 1.5% processing fee of the value of the facility (as the funds are tranched) plus $100 a month financing management fee

In connection with the debt financing the Company also announces it will close on the acquisition of IQ724 from Mobi724 with the proceeds from this debt facility on July 2nd, 2019.

“Establishing a growing relationship with lenders like BDC Capital is a key priority for Ackroo,” commented Steve Levely, Chief Executive Officer of Ackroo. “As we look to continue down our inorganic growth path having access to debt facilities like this one affords us the ability to continue to grow in a material way while reducing potential dilution to our shareholders.  These funds will immediately go to work to close on our acquisition of IQ724 from Mobi724 and in turn will help add a significant amount of positive EBITDA to the Company.  The partnership aligns perfectly with our goals to continue to simplify, consolidate and improve the merchant marketing landscape while keeping the best interest of the Company and our shareholders in mind.”

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