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Fusion Completes in New $40MM Credit Facility With Opus Bank

September 08, 2015, 08:39 AM
Filed Under: Technology
Related: Fusion, Opus Bank

Fusion, a leading provider of cloud services, has completed a debt refinancing that includes a new senior secured credit facility with Opus Bank. This refinancing provides Fusion with a significantly lower cost of debt while simultaneously expanding the Company's access to growth capital, as part of the Company's multi-year strategic plan to achieve greater scale primarily through acquisitions.

Matthew Rosen, Fusion's Chief Executive Officer, commented, "We are proud to announce our new credit facility with Opus, a leading commercial bank, as it represents a key milestone for us in optimizing our capital structure. This new facility, together with the increased commitments at a reduced interest rate from our existing debt providers Praesidian Capital and United Insurance, demonstrates our lenders' high level of confidence in Fusion's strategy and track record of significant growth through efficient deployment of our capital. We wish to thank our lenders for their strong support as we continue to execute our growth strategy."

Rosen continued, "As we recently highlighted on our Second Quarter 2015 earnings call, we have identified three near-term strategic objectives for our business. The first is to continue to create significant scale, primarily through acquisitions and complemented by organic growth. Our second objective is to optimize our capital structure to reflect the meaningful progress we have made in building Fusion over the past three years while supporting our growth plans. Our third objective is to drive efficiencies and cost savings by leveraging our increasing scale.

"The success of our debt refinancing advances all three of these objectives by significantly strengthening our balance sheet and improving our financial flexibility, while providing an additional $28 million in growth capital to pursue our goal of building even greater scale and operating leverage in our business," Rosen said.

"Opus Bank is delighted with this transaction and the opportunity to establish a relationship with Fusion," said Kevin McBride, Senior Managing Director, Technology Banking at Opus Bank. "Opus is committed to providing small and mid-sized companies the capital necessary to expand and grow, and we are excited to be working with a leader in the rapidly expanding cloud services sector."

"Praesidian is pleased to expand our lending commitment to Fusion," said Glenn Harrison, Partner at Praesidian Capital. "Fusion's management team has established a solid track record with a 30% compounded annual growth rate in revenues over the past three years, and we look forward to helping support future growth."

Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud communications, cloud connectivity, and cloud computing.

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