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Elephant Talk Enters into Amended $6.5 Million Credit AgreementNEW YORK, July 14, 2015 /PRNewswire/ -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) ("Elephant Talk" or the "Company"), a global provider of Software Defined Network Architecture (ET Software DNA® 2.0) platforms and cyber security solutions, today announced as of July 9, 2015, it has entered into an amended Credit Agreement with its existing lender for a Term Loan Facility of $6.5 million. Steven van der Velden, Chairman and CEO of Elephant Talk stated, "We are pleased to enter into an amended long-term credit agreement with our existing lender for a Term Loan Facility of $6.5 million. With the completion of this agreement and our recent settlement with Grupo lusacell which included $12.6 million in cash that was partially used to retire $5.7 million of the lender's original 2014 $12 million term loan and certain expenses in connection with the amended $6.5 million loan, we are well positioned to execute on our strategic growth initiatives currently underway in North America, Latin America, Europe and the Middle East. We want to thank our creditors and our shareholders for their patience and support during this process." As part of the amendment dated July 9, 2015, Elephant Talk and its subsidiaries collectively and the Administrative Agent entered into a First Amendment to the Credit Agreement and Waiver, amending certain terms of the Credit Agreement between the parties dated November 17, 2014. Pursuant to the Amendment, the Lender and Administrative Agent agreed to waive the Existing Default as defined in the Credit Agreement subject to certain terms and conditions in the Amendment. The Amendment reduced the term loan facility to $6.5 million that shall bear interest at the LIBOR rate plus an applicable margin per annum, which may be decreased under certin circumstances such as the Company's achievement of certain adjusted EBITDA during certain periods. The terms of the original Credit Agreement and the ancillary agreements including the Security Agreement remain in effect unless otherwise amended in the Amendment. For further information please review the Company's 8K filed on July 14, 2015 at www.sec.gov. About Elephant Talk Communications Corp.: Forward-Looking Statements: Contacts: Investor Relations: Public Relations: Logo - http://photos.prnewswire.com/prnh/20120917/MM75872LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/elephant-talk-enters-into-amended-65-million-credit-agreement-300112266.html SOURCE Elephant Talk Communications Corp. |