Boingo Wireless, Inc. announced that the company entered into a new credit agreement, dated November 21, 2014, with Bank of America Merrill Lynch and Silicon Valley Bank. Bank of America Merrill Lynch will serve as the sole lead arranger and sole bookrunner for the agreement.
The $50 million credit agreement, which includes a $46.5 million revolving credit facility and a $3.5 million term loan, has a term of four years. The facility will support the company’s future growth opportunities, working capital needs and other general corporate purposes. The Company also has the right to request an increase of the facility in an amount of up to an additional $40 million.
“We are pleased with the support received from Bank of America Merrill Lynch and Silicon Valley Bank,” said Peter Hovenier, Chief Financial Officer of Boingo Wireless. “The $50 million facility, coupled with its $40 million accordion feature, strengthens our liquidity position at attractive rates. Paired with our strong balance sheet and cash flow prospects, the credit facility will provide us with flexibility to continue investing in our strategic growth initiatives.”