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Planet Payment Closes $10MM Facility With Citizens Bank

June 12, 2015, 07:38 AM
Filed Under: Technology

Planet Payment  entered into a $10 million secured revolving credit facility pursuant to a Credit and Security Agreement dated June 10, 2015, by and among the company, Citizens Bank, N.A. and certain affiliates of the company as borrowers or guarantors. The credit facility will provide funds for general corporate purposes and repurchases of issued and outstanding capital stock of the Company. Amounts repaid under the Credit Facility may be reborrowed. The credit facility matures on June 10, 2020 and is payable in full upon maturity.

Revolving loans under the credit facility will accrue interest at the London interbank offered rate then in effect (adjusted for any reserve requirements required by law), plus a margin of 2.50%.

The credit agreement also provides for a letter of credit sub-facility under the credit facility of up to $2 million.

The credit agreement contains customary representations and warranties and affirmative and negative covenants. Among other affirmative covenants, the Company and its subsidiaries on a consolidated basis must (a) maintain a minimum Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of 1.20:1.00, tested as of the last day of any fiscal quarter on a rolling four-quarter basis, (b) not exceed a maximum Leverage Ratio (as defined in the Credit Agreement) of 2:00:1:00 at all times, tested as of the last day of any fiscal quarter on a rolling four-quarter basis (“Leverage Ratio Covenant”) and (c) maintain, at all times, the Minimum Availability Requirement (as defined in the Credit Agreement) of at least $5,000,000 in the aggregate of (i) cash and cash equivalents and (ii) availability under the Line of Credit.

The credit facility is secured by substantially all of the company’s personal property, including the company’s intellectual property and that of its subsidiaries that are borrowers or guarantors.

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