Elephant Talk (ETAK) Announces Refinancing, Commercial Update
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Elephant Talk Communications Corp. (NYSE: ETAK) ("ET" or the "Company"), a provider of cloud-based mobile network solutions, today announced that it had reached agreement in principle with its senior secured lender to increase and restructure its existing $6 million loan.
Under the terms of the proposed Second Amendment, the senior secured lender will increase the loan facility by $1,202,447, waive the Company's existing defaults under the financial covenants and will reset the agreed maturity date to December 31, 2016, among other changes.
Hal Turner, Executive Chairman of the Board of ET, commented: "It gives me great pleasure to confirm that we have reached agreement in principle with our senior secured lender to restructure our debt financing arrangements. This will give significant comfort to all our stakeholders and gives the Company a solid foundation to continue to execute on its ambitious restructure and growth strategy. Our senior lender and customers tell us that they have been very impressed with the professionalism of the new management team who have worked tirelessly to rebalance the business so that it is sustainable. I thank each of my management team colleagues for their noteworthy leadership and contributions to our worthy mission."
Mr. Turner continued: "Throughout the recent financial difficulties, our senior lender and our major partner, Vodafone Enabler, have supported us beyond the call of duty. Our thanks go to these critical stakeholders. Our true strategic partnership with Vodafone Enabler continues to flourish."
Mr. Luis Jiménez-Tuñón, Chief executive of Vodafone Enabler, said: "Elephant Talk and Vodafone Enabler continue to strengthen their partnership. We are impressed with the continued performance of the ET platform, supporting ET's management restructuring efforts which will provide real opportunities for sustainable growth. Already this last year, we grew our subscriber base on the ET platform by 9%, and with our new joint strategic initiatives we are looking to grow from 1.2m active subscribers to 1.6m subscribers in the next fiscal year. We continue to innovate and we look forward to working with ET to evolve the platform to a truly global cloud platform, and we have specific new technology projects and developments in our pipeline which we expect will be leveraged wider within Vodafone."
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