TORONTO – Mobilicity has announced that it has entered into a $75 million second lien financing. The new financing will be available to Mobilicity in two stages.
The first stage consists of a $35 million facility provided by certain lenders and the second stage will consist of a $75 million follow-on facility that will be backstopped by the lenders. The first stage will be available in three draws, with each draw becoming available upon satisfaction of certain conditions precedent. At this time, the first draw of $15 million has been completed.
Certain existing debt holders of Mobilicity will have the right to subscribe as lenders under the follow-on facility. Proceeds of the follow-on facility will be used to repay the first $35 million facility in full and provide Mobilicity with additional capital for general corporate purposes.
The company says the additional financing significantly “enhances Mobilicity's financial strength and is an important step to the achievement of Mobilicity's strategic goals going forward.”
