PowerFleet signs two term facilities totaling $85 million

By Mary-Katherine Stinson

Lexington, Ky., March 12 – PowerFleet, Inc. with wholly owned subsidiaries I.D. Systems, Inc. and Movingdots GmbH signed two term loan facilities totaling $85 million with FirstRand Bank Ltd., acting through its Rand Merchant Bank division, according to an 8-K filing with the Securities and Exchange Commission.

The two $42.5 million facilities, the term A and term B facilities, were entered into in connection with PowerFleet’s proposed business combination with MiX Telematics Ltd.

The facilities will mature on the last business day of the month three years following the closing date for the term A facility and the last business day of the month five years following closing for the term B facility.

The facilities do not amortize.

Borrowings under the term facilities will bear interest at the applicable fixed rate, which will be determined in writing each time the facility is utilized.

Borrowings may be voluntarily prepaid in whole or in part at any time upon prior written notice, in whole or in part, subject to a refinancing fee equal to 2% of the amount prepaid if before the first anniversary or 1% of the amount prepaid if before the second anniversary. After the second anniversary there is no refinancing fee. If voluntary prepayments are made in part, they must be made in minimum amounts of $5 million.

PowerFleet is required to pay a non-refundable deal structuring fee of $850,000 to Rand Merchant Bank in addition to certain costs and expenses.

Proceeds may be used to redeem all the outstanding shares of the company’s series a convertible preferred stock and for general corporate purposes.

Woodcliff Lake, N.J.-based PowerFleet is a provider of internet of things software-as-a-service solutions that optimize the performance of mobile assets and resources to unify companies’ business operations.

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