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Rimini Street to fully redeem series A preferred stock on July 20
Chicago, July 8 – Rimini Street, Inc. announced that it will fully redeem its series A preferred stock on July 20 with proceeds from a new bank loan, according to a press release.
The company is using $88 million of the proceeds from a $90 million term loan to redeem the preferreds.
With the new bank loan, a common stock offering in March, previously series A preferred stock buybacks for $75 million from October 2020 to April 2021 and the planned buyback of the remainder of the preferred stock, the company expects the first-year interest and accretion of discount to be approximately $3 million compared to the 2020 full-year cost of the series A preferred stock of $27 million, yielding a savings of approximately $24 million.
Additionally, the buyback of the remaining series A preferred stock will reduce the company’s fully diluted shares of common stock outstanding by approximately 9%, or 8.8 million common shares.
Rimini Street is a Las Vegas-based enterprise software products and services company.
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