|[March 07, 2014]
Mavenir Systems, Inc. Announces the Repayment and Amendment of its Debt Facilities
RICHARDSON, Texas --(Business Wire)--
Systems (NYSE: MVNR), a leading provider of software-based
networking solutions, today announced the repayment of the outstanding
balance of $15.0 million plus accrued interest on March 5, 2014 on its
2013 subordinated loan facility, using funds received in its recent
Initial Public Offering ("IPO"). This facility bore interest at 12%, or
$1.8 million per year in cash interest payments.
Additionally, Mavenir™ amended its current debt facility with Silicon
Valley Bank to reduce the interest rate on the term loan and to extend
the term to five years from three years, and modify the financial
covenants. Total borrowing capacity under the facility was increased by
approximately $12.5 million. No material changes were made to the
revolver portion of the facility. The amendment was entered into on
March 6, 2014.
"This amendment is a result of our recent IPO and continued growth. We
anticipate this repayment and amendment will substantially reduce our
financing costs, freeing funds for ongoing investments in new product
development and market expansion," said Terry Hungle, Chief Financial
Officer, Mavenir Systems (News - Alert).
"Helping our innovative clients increase their probability of success is
what we striv to do every day," said Robert Sureck, Senior Market
Manager for Silicon Valley Bank in Texas. "We're thrilled to be able to
build on our relationship with Mavenir as it continues to grow and
Opinions, forecasts, projections or statements, other than statements of
historical fact, are forward-looking statements that involve risks and
uncertainties. Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and include statements related to our
expected financing costs and the expected development of our products
and markets. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give
no assurance that such expectations will prove to be correct. Actual
results may differ materially due to a variety of factors, some of which
may not be foreseen by Mavenir. These risks and other risks are detailed
in the Company's filings with the Securities and Exchange Commission,
including risk factors listed in the Company's Annual Report on Form
10-K and other filings with the SEC (News - Alert). The Company's filings with the SEC
may be found at www.mavenir.com
By making these forward-looking statements, the Company undertakes no
obligation to update these statements for revisions or changes after the
date of this release, except as required by law.
Mavenir is a leading provider of software-based communications solutions
that enable mobile service providers to deliver high-quality internet
protocol (IP)-based voice, video, rich communication and enhanced
messaging services to their subscribers globally. Mavenir's mOne®
software platform has enabled leading mobile service providers to
introduce the industry's first live network deployment of Voice-Over-LTE (News - Alert)
(VoLTE) and the industry's first live deployment of next-generation Rich
Communication Services 5.0 (RCS). Our solutions deliver next-generation
services such as RCS, VoLTE and Voice over Wi-Fi (VoWi-Fi) over existing
2G and 3G networks and next-generation 4G LTE networks.
© 2014 Mavenir Systems, Inc. All rights reserved.
Mavenir Systems®, mOne®, AirMessenger®, Mavenir™, mStore™ and mCloud™,
Transforming Mobile Networks™, are trademarks of Mavenir Systems, Inc.
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