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CHANTILLY, Va.--(BUSINESS WIRE)--
Online Resources Corporation (NASDAQ: ORCC), a leading provider of
online financial services, today announced that effective September 29,
2011, it has amended and extended its senior secured credit facilities
through February 21, 2013. The Company sought this extension to support
continuing execution of its strategic growth plan.
Following a $3 million prepayment in conjunction with the amendment and
a $1.5 million scheduled payment, the Company's term loan balance is now
$22.3 million. The extended facilities also include a $12 million
revolving credit facility which remains undrawn. Both facilities carry a
rate of LIBOR plus 275 to 325 basis points, depending on leverage.
The Company's senior secured credit facilities are provided by a
syndicate of banks including administrative agent, Bank of America,
syndication agent, Silicon Valley Bank, SunTrust Bank and Capital One.
"By extending the maturity date of our senior debt, we expect to gain
additional flexibility as we continue to make investments in the
Company," said Catherine A. Graham, executive vice president and chief
financial officer for Online Resources. "Pursuant to the strategic
growth plan we introduced earlier this year, we are making progress in
strengthening our sales, product management and marketing functions and
building out our development center in India. This change in our debt
structure allows us to continue these initiatives while maintaining a
healthy cash balance."
About Online Resources
Online Resources (NASDAQ: ORCC) powers financial interactions between
millions of consumers and the Company's financial institution and biller
clients. Backed by its proprietary real-time payments gateway that links
banks directly with billers, the Company provides web and phone-based
financial services, electronic payments and marketing services to drive
consumer adoption. Founded in 1989, Online Resources is the largest
financial technology provider dedicated to the online channel. For more
information, visit www.orcc.com.
This press release provided by Online Resources Corporation (as well
as other written and oral statements made by the company from
time to time) contains forward-looking statements which are based
on our management's current expectations and beliefs, and on a number of
assumptions concerning future events which have been made with only
information that is currently available. The words "will," "would,"
"could," "may," "should," "estimate," "project," "forecast," "intend,"
"expect," "believe," "target," "designed," "plan," and similar
expressions are intended to identify forward-looking statements. Readers
are strongly cautioned not to place undue reliance on such
forward-looking statements, which are not a guarantee of any results or
performance and are subject to a number of known and unknown risks,
uncertainties and other factors (including those which are outside of
Online Resources' control) which could cause actual performance or
results to differ materially and adversely from any results or
performance expressed or implied by such forward-looking statements.
Certain factors that might cause such a difference include, but are not
limited to: our history of losses and anticipation of future
losses; potential fluctuations in our operating results; our dependence
on the marketing efforts and technology of third parties; the potential
loss of one or more material clients; our potential need for additional
capital; our potential inability to prevent systems failures and
security breaches; our potential inability to expand our services and
related products in the event of a substantial increase in demand for
such services and products; competition in our markets; our ability to
attract and retain skilled personnel; our reliance on patents and other
intellectual property; potential change in the rate of user adoption of
the products and services we offer; our exposure to continued
consolidation in the financial services industry; and government
regulations affecting our business and client base. For a more
detailed description of the factors that could cause such a difference
in our results, please refer to Online Resources' filings with the
Securities and Exchange Commission, including (but not limited to) our
Annual Report on Form 10-K filed with the SEC on March 15, 2011 and the
information under the heading "Risk Factors" contained in our Quarterly
Report on Form 10-Q/A filed with the SEC on August 10, 2011. Online
Resources Corporation assumes no obligation to update or supplement any
such forward-looking statements.
Online Resources Corporation
Media Contact:
Beth
Halloran
Sr. Dir., Corporate Communications
703-653-2248
bhalloran@orcc.com
or
Investor
Contact:
Catherine Graham
EVP & Chief Financial Officer
703-653-3155
cgraham@orcc.com
Source: Online Resources Corporation
News Provided by Acquire Media
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