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PNC Bank Provides $3MM in Credit Facilities to VerifyMe

September 28, 2022, 07:39 AM
Filed Under: Technology
Related: PNC Bank

VerifyMe entered into a new debt facility with PNC Bank and repaid all outstanding principal and interest on the promissory note issued in connection with the PeriShip acquisition.

The new debt facility includes a $1 million revolving line of credit with a term of one-year, expiring in September 2023. The revolving line of credit has no scheduled payments of principal until maturity, and bears interest per annum at a rate equal to the sum of Daily SOFR plus 2.85%. The debt facility also includes a four-year term loan for $2 million which matures in September of 2026. The term loan incurs interest per annum at a rate equal to the sum of Daily SOFR plus 3.1%.  The revolving line of credit and term loan are guaranteed by the Company and secured by the assets of PeriShip and the Company.

Also on September 22, 2022, PeriShip paid in full the $2.0 million principal amount promissory note issued to the seller in connection with the PeriShip acquisition for $1.8 million, inclusive of the Company redeeming 61,000 shares of its common stock from the seller, at which point the guaranty agreement entered into by the Company in connection therewith was automatically terminated and has no further effect.

"We are very pleased with our new banking agreement with PNC Bank which provides us more flexibility to execute our long-term growth strategy.  This facility provides us with the ability to repay our $2 million obligation to the seller of Periship, LLC at a discount and replace it with a reasonable interest rate obligation going forward over 4 years.  We look forward to developing an expanded relationship with PNC Bank," said Patrick White, CEO.

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