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Pareteum Announces Restructuring of Senior Secured Debt ObligationNEW YORK, Dec. 29, 2016 /PRNewswire/ -- Pareteum Corporation (NYSE MKT: TEUM) ("Pareteum," or the "Company"), a leading international provider of mobile networking software and services, today announced it has entered into an Amended and Restated Credit Agreement (the "Amendment") with its senior secured lender to restructure its debt, including extending the maturity date of amounts owed into 2017 and 2018. "We are pleased to have reached an agreement with our senior lender to extend the maturity date of the outstanding debt and to enter into a structured, long-term repayment plan that affords the Company with added flexibility to improve our terms as we successfully execute on our post restructuring business plan," said Hal Turner, Pareteum's Executive Chairman. "We believe that the willingness of our lender to work with our team on this restructuring validates the significant progress we have achieved in 2016 and demonstrates their confidence in the ability of our roadmap to create value for our customers, business partners and shareholders. Bolstered by our lender's renewed support, our team continues its commitment to the execution of our plan to move the business forward, expanding our sales organization, continuing to drive technical innovation and building on the momentum we have generated to ensure we capitalize on the significant market opportunities that lie ahead in 2017 and beyond." "Today's agreement is the result of the operational progress Hal and his team have made to restructure the business and ensure that that they are on a solid and achievable path for growth," said Ivan Zinn of Atalaya Capital Management. "We look forward to the continued progress at Pareteum including the value creation we believe their unique software technology and lean business model is capable of producing." Pursuant to the Amendment, the lender has agreed to extend the maturity date on the $10.1 million of outstandingprincipal and premiums to June 30, 2017. Upon repayment of $1.5 million by March 31, 2017 and an additional $1.5 million by June 30, 2017, the maturity date on the remaining outstanding debt will be automatically extended to December 31, 2017. A further automatic extension to February 28, 2018 is based on the Company achieving certain leverage ratios as of November 30, 2017. In addition, the Company agrees to repay $250,000 by the end of each fiscal quarter of 2017, and $500,000 by the end of each fiscal quarter of 2018. The Amendment also provides for the current interest rate of 13% to be reduced to 12% once the Company has made the first two $1.5 million payments in 2017. As part of the Amendment, the lender received warrants to purchase 31.8 million common shares of the Company at $0.13 per share through December 27, 2019. For further details, please see the Company's filing on Form 8-K dated, December 29, 2017. About Pareteum Corporation: Forward-Looking Statements: Investor Relations Contacts: Scott Gordon
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