Emtec, Inc. Enters into new $45 Million Credit Facility
Springfield, NJ. - Emtec, Inc. (OTCQB: ETEC) (“Emtec” or the “Company”), a systems integrator, today announced that it has refinanced its existing Credit Facility with PNC Bank, N.A., through its PNC Business Credit division, which provides asset-based lending. PNC Bank, N.A. is a subsidiary of The PNC Financial Services Group. In addition the Company announced an additional $3 million mezzanine investment by Peachtree Equity Partners, an Atlanta-based private equity firm specializing in subordinated debt and equity investments for middle market growth companies.
Dinesh Desai, Chief Executive Officer of Emtec, commented, “We are pleased to have an exciting new relationship with PNC who will be a valuable resource for us going forward. We feel we have selected a leading institution that can help us grow and that understands our services story well. We have the privilege of also bringing into our capital structure a new mezzanine investor in Peachtree with solid experience in the technology space. PNC, and both of our mezzanine investors, Peachtree and NewSpring, now form a core base of financial support for our growth platform. We are looking forward to their advice and input in key strategic and operating decisions.”
John McCarty, a Principal with Peachtree, added “Peachtree is excited to partner with Emtec as they expand their business and service offerings. The growth in the services and consulting segments provides an attractive complement to the legacy procurement operations. In addition, the company’s strong presence in both Atlanta and the southeast region makes Emtec a logical fit for our portfolio. ”
Greg Chandler, Chief Financial Officer of Emtec, stated, “We want to thank DLL for supporting us over the years. They truly helped us get to the stage we are at and we are sure we will find other ways to work with them in the future. We have been in discussions with PNC for years and we felt we were finally at the stage where we could bring on a lender who demonstrated a unique knowledge of the IT services. We were pleased with their speed and flexibility around the terms of the facility, and their creativeness in finding unique ways to structure it to help us better serve all our clients. Peachtree was introduced to us during our capital raising process last fiscal year and we wanted to find a way for them to join us in our journey. Fortunately, NewSpring was able to work with us to add them as a co-lender in the Company’s Mezzanine debt. With three strong financial partners we are examining new ways to grow the Company. This is an exciting time to be at Emtec.”
Emtec’s legal advisor was Dechert LLP and for the Mezzanine raise the financial advisor was Janney Montgomery Scott LLC.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing retail and business banking, residential mortgage banking, specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending, wealth management and asset management. Follow @PNCNews on Twitter for breaking news, updates and announcements from PNC.
ABOUT PEACHTREE EQUITY PARTNERS
Based in Atlanta, Peachtree Equity Partners provides subordinated debt and equity securities to middle market companies. Peachtree’s capital is utilized for organic growth and expansion, acquisitions, recapitalizations, and shareholder buyouts. Peachtree targets investments of $2-7 million in companies with $2-10 million of EBITDA. The principals of Peachtree founded and managed the private equity investment business of legacy Wachovia. For more information on Peachtree, please visit www.peachtreeequity.com or contact us at 404.870.8900.
ABOUT NEWSPRING CAPITAL & NEWSPRING MEZZANINE CAPITAL
NewSpring Capital, based in Radnor, Pennsylvania; Short Hills, New Jersey; Washington, D.C. and Baltimore, MD is a leading provider of private equity capital focused in the Mid-Atlantic region. NewSpring Capital currently has $600 million invested across three distinct investment strategies through its family of funds. NewSpring Mezzanine Capital also provides mezzanine capital for expansion stage and buy-out opportunities in the business services, health care, information technology, and specialty manufacturing sectors.
Phone : 973.232.7897
Email : Deanna.Evers@emtecinc.com
Emtec is an IT consultancy dedicated to helping world class organizations in the enterprise, education, and government markets drive transformation and growth by employing the latest enterprise technologies and innovative business processes. We empower our clients to accelerate innovation and deliver amazing client experiences to better compete and ultimately lead in their industry. Our “Client for Life” approach is built upon over 20 years of delivering rapid, meaningful and lasting business value. Our offerings span the IT spectrum from Advisory, Applications (Enterprise, Custom, Mobile and Cloud) as well as a suite of Analytic and Infrastructure Services. www.emtecinc.com