Global Axcess Corp. announced that it has signed a new credit line with Fifth Third Bank to help fund growth in the company’s self service kiosk business and cut the cost of debt to the company. The credit line totals $17 million, comprised of a term note, a draw note and an equipment line.
The term note totals $5 million, and has a term of three years. The proceeds will be used to pay off the company’s balances with two other banks.
The draw note totals $2 million and has an 18-month amortization. Global Axcess Corp said that the proceeds would be used to fund the purchase of inventory for expansion of the company’s DVD business.
Global Axcess Corp said that the equipment line totals $10 million, and will fund the purchase of DVD kiosks, and automated teller machines to be placed in select locations in its service area. The equipment line has a one year term of interest only payments, and then a three year amortization.
Global Axcess Corp said that the all three components of the credit line charge interest at the London Interbank Offering Rate (LIBOR) plus 400 basis points, or 5.5%, whichever is greater.
Global Axcess Corp owns 4,500 automated teller machines and other self service kiosks located in 43 states.
For more information on the company, go to www.globalaxcess.biz