Emtec: $10 million mezzanine debt from NewSpring to fund acquisition

By Lisa Kerner

Charlotte, N.C., Aug. 18 - Emtec, Inc. will use $10 million of mezzanine debt financing from NewSpring SBIC Mezzanine Capital II, LP to fund its acquisition of Chicago-based Gnuco, LLC (dba Emerging Solutions), to pay transaction expenses, to repay senior debt and for growth.

Borrowings under the subordinated loan agreement will bear regular interest at a rate equal to 12% per annum on the outstanding principal amount, according to an 8-K filing with the Securities and Exchange Commission.

Accrued and unpaid regular interest is payable on the last business day of each fiscal quarter starting Nov. 30.

Emtec is an information technology services provider based in Marlton, N.J.

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