MILWAUKEE, April 25, 2013 /PRNewswire/ -- ARI Network Services, Inc. (OTCBB:ARIS), a leader in creating, marketing, and supporting SaaS and DaaS solutions that connect consumers, dealers, distributors, and manufacturers in selected vertical markets, announced today the closing of new senior secured credit facilities with Silicon Valley Bank. The new credit facilities are structured to help ARI better facilitate its growth strategies.
Under terms of the agreement, the Company refinanced its existing $2.7 million term loan and $1.5 million revolving credit facility with Fifth Third Bank and its existing $700,000 term loan with a shareholder. The principal amount of the new term loan is $4.5 million, and will be repaid in quarterly installments through February 1, 2018. The Company may borrow an additional $3 million under the terms of the revolving credit facility, subject to certain limitations as set forth in the agreement. The revolving credit facility matures on April 26, 2015.
"We have been seeking a banking partner that understands the software as a service business (SaaS) and can be a long-term partner as we grow ARI. We are very excited about our new relationship with Silicon Valley Bank as we believe they are the leader in providing banking services to growing technology companies," said Roy W. Olivier, Chief Executive Officer of ARI. "The increase in availability under the revolving credit facility as well as the tiered principal repayments under the term loan will provide the funds to continue to invest in our growth strategy while we continue to integrate our recent acquisitions."
"It's with great enthusiasm that we are kicking off a new relationship with the ARI team," said
Mike Kohnen, Managing Director for Silicon Valley Bank in the Midwest. "We are dedicated to finding ways to provide financing for innovative companies like ARI that are creating new business models that require creative thinking. We look forward to our partnership with ARI as it continues to grow and meet its goals."