Dialogic Eliminates Debt-Related Covenants Through 2013
Dialogic Inc. (Nasdaq:DLGC), the Network Fuel™ company, today announced
that it has entered into amendments to its credit agreements with both
Tennenbaum Capital Partners, LLC (“TCP”) and Wells Fargo...
Dialogic Inc. (Nasdaq:DLGC), the Network Fuel™ company, today announced that it has entered into amendments to its credit agreements with both Tennenbaum Capital Partners, LLC (“TCP”) and Wells Fargo Foothill Canada ULC (“WFFC”). As part of the amendments TCP and WFFC have agreed to eliminate all financial covenants under the credit agreements through 2013. Dialogic has also secured an additional $4.5 million in debt financing from TCP. The proceeds of the financing will be used to fund initiatives that will save an estimated $12-$14 million of operating expense in 2013 as well as to accelerate investment in sales and marketing activities. “We are pleased to have completed this deal for growth capital with TCP,” said Kevin Cook, President and CEO of Dialogic. “This financing is another step forward for the company as we position Dialogic to better serve its Service Provider and Application Development partners while building long-term value for our shareholders. Separately, by eliminating the financial covenants though 2013, the company has the financial flexibility to enable our key strategic initiatives to build momentum in the marketplace.“ About Dialogic Dialogic (Nasdaq:DLGC), the Network Fuel™ company, inspires the world’s leading service providers and application developers to elevate the performance of media-rich communications across the most advanced networks. We boost the reliability of any-to-any network connections, supercharge the impact of applications and amplify the capacity of congested networks. Forty-eight of the world’s top 50 mobile operators and nearly 3,000 application developers rely on Dialogic to redefine the possible and exceed user expectations. For more information on Dialogic and the communications solutions we energize, visit www.dialogic.com and www.dialogic.com/showcase. This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of these securities. The foregoing summarizes certain terms of various agreements entered into by Dialogic, does not purport to be complete and is qualified in its entirety by reference to Exhibits 4.1, 10.1, 10.2 and 10.3 attached to the Form 8-K filed yesterday by Dialogic with respect to the transaction referenced above. For more information please refer to the 8K document itself.