Systems America is in Discussions with Several Banks and Debt Funds for Senior and Mezzanine Debt to Finance its Acquisitions
Exploring Multiple Options to Raise over $20 million in Debt including a Bond Offering in European Markets
SAN RAMON, California, August1, 2012 — Systems America, Inc. (OTC: SYAI)(the “Company”), a premier provider of cloud computing and information technology solutions, announced todaythat the Company is in discussions with number of banks and mezzanine debt funds to provide capital to fund the Company’s acquisitions. As announced a few weeks back, the Company is planning to acquire several companies with least dilution possible to its existing shareholders.
In August 2011, the Company had received a commitment letter from Bridge Bank. After exhaustive due diligence conducted by Bridge Bank of the Company, Bridge Bank had agreed to provide Systems America a secured $6 million asset-based line of credit and $2 million term loan to fund specific targetedcompanies. The Company is discussing similar debt facilities with several banks and mezzanine debt funds to raise over $20 million in financing.
The Company is also exploring an option to raise funds via European and Asian bond offering. The Company has positioned itself to qualify for submittal of a bond offering inthe European markets. The company expects to file the documentation with regulators for a $20 million bond offering in Europe. As the Company prepares the required filingsfor registration of the securities, the Company has contacted Bond Rating agencies to rate the bond offering and expects the bonds to be rated asinvestment grade, with a coupon in the range of 9.25% to 9.75%, which is typical of a bond rating in Europe.
“This proposed new financing and bond offering would ensure that all the Company’s operations are fully funded with regard to the Company’s business plan to complete several acquisitions and strengthen the Company’s balance sheet and provides additional working capital to accommodate future growth,” said Adesh Tyagi, Chairman & Chief Executive Officer of Systems America. Adesh Tyagi further added that “We have successfully negotiated with several acquisition target companies over the pastfew months. Based on our negotiations and organic growth, we can demonstrate improved operating cash flow, and are now poised to build upon this foundation going forward.”
About Systems America
Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and governmentclients worldwide. We are ranked one of the fastest growing companies withmultiple locations around the world. Systems America delivers superior cloudcomputing, information technology consulting services, and systems andintegration services to hundreds of clients worldwide. Building on a corecompetency of efficient technology infrastructure outsourcing, the company is headquarteredin San Ramon, California, United States. For additional information about Systems America, please visit http://www.systemsamerica.com.
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The information provided hereinmay include forward-looking statements. These forward-looking statements may beidentified by the use of terms and phrases such as “anticipates,”"believes,” “can,” “could,”"estimates,” “expects,” “forecasts,”"intends,” “anticipates”, “may,”"plans,” “projects,” “targets,” “will,”and similar expressions or variations of these terms and similar phrases. Theseforward-looking statements are largely based on our current expectations andprojections about future events and financial trends affecting the financialcondition of our business. Such forward-looking statements include, withoutlimitation, projections about our possible future results, statements about ourplans, strategies, business prospects, changes and trends in our business andthe markets in which we operate. Additionally, statements concerning futurematters such as new business models, new products, product enhancements, newtechnologies, sales levels, expense levels and other statements regardingmatters that are not historical are forward-looking statements. Managementcautions that these forward-looking statements relate to future events or ourfuture financial performance and are subject to business, economic, regulatoryand other risks and uncertainties, both known and unknown, that may causeactual results, levels of activity, performance or achievements of our businessor our industry to be materially different from those expressed or implied byany forward-looking statements. There is no certainty or assurance that anyprospective events referenced as forward-looking statements will be achieved.The Company undertakes no duty to provide updates with respect to mattersdisclosed in this press release.
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Press Contact:
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Systems America, Inc.
Investor.Relations@systemsamerica.com
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from OTC Markets Group – News, Filings & Corporate Actions http://www.otcmarkets.com/stock/SYAI/news?id=50725
