THK announces a new credit line this AM:
Press Release Source: CGI Holding Corporation
Think Partnership Signs Commitment Letter for $15 Million Line of Credit
Thursday June 16, 7:00 am ET
NORTHBROOK, Ill.--(BUSINESS WIRE)--June 16, 2005--CGI Holding Corporation d/b/a Think Partnership Inc. ("THK" or the "Company") (AMEX: THK - News) announced that it has signed a Commercial Loan Commitment Letter from Wachovia Bank, National Association that will permit the Company to borrow up to $15.0 million. The Commercial Loan Commitment Letter is subject to negotiation and signing of definitive agreements and contemplates the following principal terms of the line of credit:
Borrowings will not exceed $15 million.
Borrowings will not exceed 1.75 times THK's 12-months trailing EBITDA, which THK currently anticipates will permit THK to borrow up to the maximum of $15 million available under the line of credit.
Borrowings will be used solely for working capital purposes and for acquisitions that are materially in the same line of business as THK and are cash flow accretive.
The line of credit facility will have a term of 36 months.
The interest rate will be 1-monthLIBOR plus 2.10 percent.
Payments will be interest only until the maturity date of the line of credit.
Borrowings under the line of credit will be secured by a first lien security interest in all of THK's assets.
T. Benjamin Jennings, the Company's Chairman, stated, "We are excited to have Wachovia Bank as our financial partner as we continue to build Think Partnership into one of the true leaders in our industry: online search, marketing and advertising, which we believe is the fastest growing and most profitable segment of the internet. While we are focusing on the integration of our existing businesses, this line of credit will allow us the flexibility to fund the cash portions of the purchase prices of our near-term acquisitions and our organic growth while maintaining an accretive capital structure."
C. Douglass Riddle, Senior Vice President of Wachovia Bank, added, "Think Partnership is becoming a leader in the search engine marketing and advertising space, and we are pleased to help fund the growth of this dynamic company."
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I was wondering when this LOC would finally happen. They used up all their remaining cash with the PrimaryAds deal plus had to use 500k in operations last quarter.....so they were facing a minor cash crunch. They had two deals still on the table, not completed yet. (Vintacom and Real Estate School Online)
CGI Holding Corporation Signs Letters of Intent to Acquire Vintacom, a Leading Online Dating Company, and Real Estate School Online, a Leading Provider of Online Education
Monday April 4, 8:45 am ET
Accretive acquisitions will broaden company's existing online dating and affiliate marketing presence, plus launch CGI's entry into online education
NORTHBROOK, Ill.--(BUSINESS WIRE)--April 4, 2005-- CGI Holding Corporation, which plans to seek shareholder approval to change its name to Think Partnership Inc. (AMEX: THK - News; "Company"), today announced that the Company has entered into two letters of intent to merge, through two wholly owned subsidiaries, with privately held Vintacom Media Group Inc. ("Vintacom") and Real Estate School Online Inc. ("Real Estate School Online"). The Company expects to pay an aggregate of $4.95 million in cash and $4.95 million in stock to acquire the two companies. The shareholders of Vintacom and Real Estate School Online will also be entitled to certain earnout/lookback payments if the pre-tax earnings of the companies exceed specified targets during the first twelve full calendar quarters following the closings. The Company expects the two acquisitions to add a total of $3.2 million dollars to its pre-tax income annually, and to be immediately accretive to earnings.
