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SYSTEMS AMERICA, INC. Logo

Systems America in Discussions with Several Banks and Debt Funds for Senior and Mezzanine Debt

Systems America in Discussions with Several Banks and Debt Funds for Senior and Mezzanine Debt to Finance its Acquisitions Exploring Multiple Options to Raise over $20 million in Debt including a Bond Offering in European Markets

 
PRLog - Jul. 31, 2012 - SAN RAMON, Calif. -- SAN RAMON, California,  -- Systems America, Inc. (OTC: SYAI) (the “Company”), a premier provider of cloud computing and information technology solutions, announced today that the Company is in discussions with number of banks and mezzanine debt funds to provide capital to fund the Company's acquisitions. As announced few weeks back, the Company is planning to acquire several companies with least dilution possible to its existing shareholders.

In August 2011, the Company had received a commitment letter from Bridge Bank. After exhaustive due diligence conducted by Bridge Bank of the Company, Bridge Bank had agreed to provide Systems America a secured $6 million asset-based line of credit and $2 million term loan to fund specific targeted companies. The Company is discussing similar debt facilities with several banks and mezzanine debt funds to raise over $20 million in financing.

The Company is also exploring an option to raise funds via European and Asian bond offering. The Company has positioned itself to qualify for submittal of a bond offering in the European markets. The company expects to file the documentation for a $20 million bond offering in Germany. As the Company prepares the required filings for registration of the securities, the Company has contacted Bond Rating companies to rate the bond offering and expects the bonds to be rated as investment grade, with a coupon in the range of 9.25% to 9.75%, which is typical of a bond rating in Europe.

"This proposed new financing and bond offering would ensure that all the Company's operations are fully funded with regard to the Company's business plan to complete several acquisitions and strengthen the Company's balance sheet and provides additional working capital to accommodate future growth," said Adesh Tyagi, Chairman & Chief Executive Officer of Systems America. Adesh Tyagi further added that "We have successfully negotiated with several acquisition target companies over the past few months. Based on our negotiations and organic growth, we can demonstrate improved operating cash flow, and are now poised to build upon this foundation going forward."

About Systems America

Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide. We are ranked one of the fastest growing companies with multiple locations around the world. Systems America delivers superior cloud computing, information technology consulting services, and systems and integration services to hundreds of clients worldwide. Building on a core competency of efficient technology infrastructure outsourcing, the company is headquartered in San Ramon, California, United States. For additional information about Systems America, please visit http://www.systemsamerica.com.

Forward-Looking Statements and Safe Harbor Statement:

The information provided herein may include forward-looking statements. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates," "believes," "can," "could," "estimates," "expects," "forecasts," "intends," "anticipates", "may," "plans," "projects," "targets," "will," and similar expressions or variations of these terms and similar phrases. These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, without limitation, projections about our possible future results, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements. There is no certainty or assurance that any prospective events referenced as forward-looking statements will be achieved. The Company undertakes no duty to provide updates with respect to matters disclosed in this press release.

Press Contact:   

Systems America, Inc.
Investor.Relations@systemsamerica.com

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Contact Email:
***@systemsamerica.com Email Verified
Source:Systems America, Inc. Investor Relations
Phone:9252262460
Zip:94583
City/Town:San Ramon - California - United States
Industry:Software, Technology
Tags:cloud computing, Software, IT, Wireless, mobile
Last Updated:Jul 31, 2012
Shortcut:prlog.org/11938900
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