Global Axcess Corp. says it has refinanced $1.2 million in 9 percent debenture notes, which are due in October 2010. The refinancing reduces the company's working capital requirements for 2010 by extending the maturity date of the notes by 15 months, without any pre-payment penalty. The transaction is related to subordinated, unsecured debentures of approximately $1.2 million provided by certain stockholders with interest-only payments made quarterly at a rate of 9 percent, with balloon payments previously due Oct. 28. Under the new terms, the note will be a three-year amortization with a balloon payment due Jan. 31, 2012, carrying an interest rate of 4.96 percent. The company says it expects approximately $40,000 in 2010 interest savings to result from the lower interest rate of the loan. Additionally, there will be the elimination of warrants for 345,000 shares of the company's common stock that were issued in relation to these notes. "We appreciate the confidence that our business partner, SunTrust, has shown in the company by extending this loan, especially during the current challenging economic environment. Refinancing the $1.2 million debt will allow us to allocate more of our 2010 working capital toward revenue growth initiatives," said George McQuain, CEO of Global Axcess.
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