Pareteum restructures senior secured debt obligation

Mobile networking software provider Pareteum Corporation (NYSE MKT: TEUM) has inked an agreement with its senior secured lender Atalaya Capital Management to restructure its debt, including extending the maturity date of amounts owed into 2017 and 2018, the company said.

The lender has agreed to extend the maturity date on the USD10.1 million of outstanding principal and premiums to June 30, 2017. Upon repayment of USD1.5 million by March 31, 2017 and an additional USD1.5 million by June 30, 2017, the maturity date on the remaining outstanding debt will be automatically extended to December 31, 2017.

A further automatic extension to February 28, 2018 is based on the company achieving certain leverage ratios as of November 30, 2017.

Pareteum Corporation and its subsidiaries provide a mobility cloud platform, utilizing messaging and security capabilities for the global Mobile, MVNO, Enterprise and IoT markets.

Pareteum restructures senior secured debt obligation

Mobile networking software and services provider Pareteum Corporation (NYSE MKT: TEUM) has agreed with its senior secured lender to restructure its debt, including extending the maturity date of amounts owed into 2017 and 2018, the company said.

The lender has agreed to extend the maturity date on the USD10.1 million of outstanding principal and premiums to June 30, 2017. Upon repayment of USD1.5 million by March 31, 2017 and an additional USD1.5 million by June 30, 2017, the maturity date on the remaining outstanding debt will be automatically extended to December 31, 2017.

A further automatic extension to February 28, 2018 is based on the company achieving certain leverage ratios as of November 30, 2017. In addition, the company agrees to repay USD250,000 by the end of each fiscal quarter of 2017, and USD500,000 by the end of each fiscal quarter of 2018. The Amendment also provides for the current interest rate of 13% to be reduced to 12% once the company has made the first two USD1.5 million payments in 2017. As part of the Amendment, the lender received warrants to purchase 31.8 million common shares of the company at USD0.13 per share through December 27, 2019. For further details, please see the company´s filing on Form 8-K dated, December 29, 2017.

Pareteum Corporation and its subsidiaries provide a complete mobility cloud platform, utilizing messaging and security capabilities for the global Mobile, MVNO, Enterprise and IoT markets. Pareteum´s large MVNE customers, include Vodafone (the world´s second largest mobile operator by customer), Zain (the 4th largest mobile operator in the world in terms of geographical presence), Cleartech, Expeto and other Tier 1 and MVNO customers.