Kneat secures €15 million secured debt financing via IPF Partners

By Marisa Wong

Los Angeles, June 26 – kneat.com, inc. (Kneat) announced it secured up to €15 million of secured debt financing from IPF Partners.

The credit facilities consist of three term credit facility commitments of €5 million each for Kneat’s Irish subsidiary, Kneat Solutions Ltd., according to a press release.

Each facility matures 18 quarters from its initial drawdown date.

In addition to the usual conditions for utilization of the facilities, availability under the latter two facilities will be subject to achievement of annual recurring revenue milestones.

Each of the facilities carries an annual cash interest of Euribor plus 700 basis points and capitalized interest of 2%.

The total cash cost of the arrangement is dependent on the final number of the three facilities used and whether the debt is repaid on each maturity date or earlier.

Kneat said it intends to draw down the first €5 million facility this quarter.

The facilities are guaranteed by the company and its U.S. wholly owned subsidiary and are secured by a perfected, sole first-priority security interest in all existing and after acquired tangible and intangible assets of Kneat Solutions Ltd., the company and its U.S. wholly owned subsidiary.

Kneat intends to use the financing alongside its own funds from operations for general corporate purposes.

Kneat is a Canadian company with operational headquarters in Limerick, Ireland, that develops and markets software products for the healthcare sector.

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