23 October 2017
Register now

Pipeline Data secures $37m in financing

29 June 2006  |  1545 views  |  0 Source: Pipeline Data

Pipeline Data Inc. (OTCBB:PPDA), a provider of integrated credit card transaction processing services for merchants, announced today that it has reached an agreement with several institutional investors to purchase $37 million of convertible notes and warrants.

The notes, which mature four years from the date of issuance, can be converted into Pipeline common stock at the conversion price of $1.30 per share. Proceeds from the transaction are earmarked to refinance $17 million of short-term, high-coupon indebtedness and to fund acquisitions. Maxim Group LLC served as the exclusive placement agent for the transaction.

Pipeline's CEO, MacAllister Smith stated "We are pleased to announce the completion of this financing. The arrangement enables us to significantly reduce our borrowing costs and lengthen the term of our indebtedness. It also provides us with the capital to consummate acquisitions of merchant portfolios and operating companies, which we believe will significantly grow our revenue and cash flow. We feel this transaction is extremely beneficial for our company and for our shareholders."

None of the convertible notes or warrants nor the shares of common stock underlying the convertible notes and the warrants issued in the financing have been registered under the Securities Act of 1933, as amended. Accordingly, these shares may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act. Under the terms of the financing, Pipeline is obligated to file a registration statement covering the shares of common stock underlying the convertible note and warrants.

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.niceactimize.comvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19135 views comments | 28 tweets | 40 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15112 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10940 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
8977 views comments | 14 tweets | 28 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job