23 March 2018

Pipeline Data closes $15 million debt financing

03 January 2006  |  1486 views  |  0 Source: Pipeline Data

Pipeline Data Inc. (Pipeline) announced today that it has completed a $15 million debt financing arrangement led by Sheridan Capital Advisors, LLC.

The proceeds from the financing have enabled Pipeline to complete its acquisition of Charge.com, Inc. ("Charge.com") and repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.

The purchase price for Charge.com was $7.5 million in cash and $9.5 million in shares of Pipeline common stock. Charge.com generated $2.3 million in pretax income for the year ended December 31, 2004 and $1.9 million in pretax income for the nine months ended September 30, 2005.

Pipeline considers the acquisition of Charge.com complementary to its business. The company will increase profitability of the newly acquired entity by: (a) relying on favorable vendor contracts, (b) utilizing Pipeline's proprietary gateway, as well as its wholesale processing division's infrastructure, and (c) employing its existing sales force to develop Charge.com's excess lead capacity, which the company believes has been largely untapped by the Charge.com marketing force.

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