Press Room
inContact Replaces Line of Credit
SALT LAKE CITY – July 20, 2009 – inContact, Inc. (NASDAQ: SAAS) (www.inContact.com), the market leader in on-demand contact center software and agent optimization tools, announced that it established a new revolving line of credit with Zions First National Bank on July 16, 2009, which replaces its previous credit line. Under the terms of the agreement, Zions First National Bank has agreed to loan up to $8.5 million at an interest rate of LIBOR plus 4.5 percent for a term of 2 years. In addition, the Company has received a commitment of $1 million, subject to final documentation and other conditions, for capital equipment financing from Zions Credit Corporation.
The new credit facility immediately replaces an existing credit agreement that provided up to $7.5 million in borrowings. The successful refinancing of the Company’s primary debt capital will provide the Company with added flexibility and cash flow to pursue its growth strategies.
The highlights of the new financing are the following:
- A variable interest rate of LIBOR plus 4.5 percent, which is currently much lower than the fixed 9 percent with the former lender
- Moving from an asset-based lender to a commercial bank
- Increase of $1 million in the line of credit and an additional $1 million in capital equipment financing
“We’ve found a strong partner in Zions Bank, one that will grow with us with regard to our credit facility,” said Paul Jarman, inContact CEO. “By moving to a commercial bank, we have increased our borrowing power at a lower current interest rate, which will result in a stronger balance sheet. Additionally, we believe this new banking relationship will provide additional confidence to our customers and partners that we have the financial flexibility to meet their needs and our commitments as the leading provider of on-demand contact center software. ”
About inContact
inContact, Inc.® (NASDAQ: SAAS) provides the market leading on-demand customer contact center platform, inContact, to approximately 600 contact centers across the globe. With its roots in telecommunications and network infrastructure, inContact is unique in its offering because it combines a powerful connectivity backbone with a world-class software platform. Companies with contact centers of all sizes have turned to inContact to address their contact handling needs as well as to manage and improve their agent workforces. The inContact platform has grown from a powerful Automated Call Distributor (ACD) with skills-based routing, Computer Telephony Integration (CTI), and Interactive Voice Response (IVR) with speech recognition, to include an innovative online hiring solution, an eLearning and communications application, workforce management functionality, and a customer feedback and survey solution. Because the inContact platform is delivered via a Software-as-a-Service (SaaS) model, customers can realize significant cost savings and flexibility compared to premises-based alternatives. To learn more about inContact, visit www.inContact.com.Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the Company’s behalf. All statements, other than statements of historical facts which address the Company’s expectations of sources of capital or which express the Company’s expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Such statements made by the Company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the Company, actual results may differ materially from the expectations expressed in the forward-looking statements. (For the complete Safe Harbor statement, please click here.)
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inContact® is the registered trademark of inContact, Inc. All other marks are the property of their respective owners.
Contacts
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Investor Contact: |
General Contact: Heather Hurst Communications Director 866-698-8911 heather.hurst@inContact.com |
inContact, Inc. 7730 S. Union Park Ave. Suite 500 Salt Lake City, UT 84047 866-965-7227 info@inContact.com |
