JACKSONVILLE, Fla. — Global Axcess Corp., an independent provider of ATM solutions, has closed a refinancing deal with SunTrust Bank.
According to a news release, the loan extends $5 million of credit to the company. GAXC says it repay the loan over 42 months, beginning April 30, with 41 equal monthly principal payments plus accrued interest.
On March 23, GAXC announced its settlement agreement with CAMOFI Master LDC, resolving a lawsuit filed by CAMOFI in October 2007. The company used the proceeds of the loan to pay $3.5 million to CAMOFI. "This credit facility from SunTrust allowed us to consummate the CAMOFI settlement and will allow us to focus 100 percent of our efforts on profitably growing the business," said George McQuain, GAXC's chief executive. "We are particularly excited to have SunTrust as a new business partner as we move forward. Since launching our turnaround two and one-half years ago, we have built a strong company that in many ways is the leader in our industry." While GAXC expects to record the one-time non-cash expense in the first quarter of 2009, it also expects savings of approximately $230,000 for the remaining nine months of 2009. These savings relate to the $39,000 and $13,000 quarterly savings mentioned above as well as interest savings because of the lower interest rate of the loan. The company says it still expects to report a profitable first quarter for 2009. "Without question, the financing by SunTrust evidences the last of multiple significant legal overhangs on the company which have dramatically hindered its ability to explore growth financing via normal debt or equity markets over the last two and one-half years," said Joe Loughry, GAXC's chairman of the board. "The Global Axcess team has done an extraordinary job of improving the internal cost structure and quality of operations under difficult circumstances. With the burden of shareholder and debt holder litigation now off the company, I fully anticipate the same energy and focus that have led to the financial turnaround of the company will now be 100 percent directed at driving future growth."
