STUDIO CITY, CA--(Marketwired - May 15, 2014) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, announces that it has entered into a secured term loan with U.S. Bank, for $4.0 million ("Debt").
The Debt will be repaid over 36 months and bears an interest rate of prime plus 1.25% annually and has no prepayment penalty. The debt is secured by the majority of the assets of the Company and its subsidiary and is subject to certain covenants. Proceeds from the Debt will be used to pay in full its existing note payable to Baker Street Capital L.P. for $3.7 million. The remaining proceeds will be used for general working capital purposes.
Mitch Francis, Chief Executive Officer of the Company, stated, "We are very pleased to announce the completion of our financing transaction. We have successfully replaced our existing secured note maturing on December 24, 2014 with new Debt carrying a significantly lower interest obligation that also lengthens the maturity of our debt. We considered several alternatives that were available to us and ultimately determined that U.S. Bank's facility gives our Company the most flexibility and cost savings," he added.
About Tix Corporation
Tix Corporation (OTCQX: TIXC) provides discount ticketing services. It currently operates eleven discount ticket stores in Las Vegas under its Tix4Tonight marquee, which offers up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the expected operations and sales, potential improvements in consumer spending in Las Vegas, and our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company's various historical filings with the Securities and Exchange Commission and, since November 2010, the Company's filings with the OTCQX. The Company assumes no obligation to update these forward-looking statements. A copy of the Company's reports for the twelve months ended December 31, 2013 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.