TORONTO--(Marketwire - Apr 1, 2013) - Redknee Solutions Inc. (TSX: RKN) (the "Company"), a leading provider of business-critical software and solutions for communications service providers, has announced that its wholly-owned subsidiary, Redknee Inc., has entered into an amended and restated credit agreement with Wells Fargo Capital Finance, part of Wells Fargo & Company, to add to its existing senior secured credit facility (which provided for a US$20 million revolving line of credit) with two new term loan facilities in the amount of US$15 million each, for a total credit facility of US$50 million.
Redknee Inc. will use the credit facilities for working capital, general corporate purposes, capital expenditures and for potential acquisitions. The credit facilities are secured by the assets of Redknee Inc., Redknee Solutions (UK) Limited ("Redknee UK") and Redknee Germany GmbH ("Redknee Germany"). The Company, Redknee UK, and Redknee Germany have guaranteed the obligations of Redknee Inc. The Company's guarantee is secured by a pledge of all of its shares in Redknee Inc.
"This expanded credit facility provides Redknee with the financial flexibility to execute on our growth strategy, as we build one of the largest independent real-time monetization and subscriber management software companies for communications service providers," said Lucas Skoczkowski, CEO of Redknee Solutions. "We believe that Redknee is primed to capitalize on mobile data growth and emerging Software-as-a-Service opportunities, while enabling our customers to gain a competitive advantage. We appreciate Wells Fargo Capital Finance's continued support as we position Redknee for long-term growth of recurring revenues and profitability."
"We are pleased to have completed such important financing for Redknee," said John Leonard, division manager of the Technology Finance division of Wells Fargo Capital Finance. "We are proud to have been able to work with Redknee's senior management team and look forward to supporting their plans for successful business growth."
For more information about Redknee and its solutions, please go to www.redknee.com.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future operations, growth, or acquisitions of the Company. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, a material adverse change in the affairs of the Company, and the factors discussed under the "Risk Factors" section of the Company's most recently filed AIF which is available on SEDAR at www.sedar.com or on the Company's website at www.redknee.com. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Redknee is a leading global provider of innovative communication software products, solutions and services. Redknee's award-winning solutions enable service providers to monetize new services, business models and content and to deliver a comprehensive customer experience. Redknee's revenue generating platform provides innovative converged billing, charging, customer care, and payments solutions for voice, messaging and data services to over 200 service providers in over 90 countries. Established in 1999, Redknee Solutions Inc. (TSX: RKN) is the parent of the wholly-owned operating subsidiary Redknee Inc. and its various subsidiaries. References to Redknee refer to the combined operations of those entities. For more information about Redknee and its solutions, please go to www.redknee.com
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain senior secured lending services of Wells Fargo & Company and its subsidiaries across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance company. For more information, visit www.wellsfargocapitalfinance.com.