Intervoice Enters Into New Credit Agreement with Wells Fargo

DALLAS, TX - Intervoice Inc. (Nasdaq:INTV) announced it has entered into a new credit agreement with Wells Fargo Bank National Association to refinance indebtedness that was outstanding under a prior term loan and revolving credit facility. The new facility provides a line of credit of up to $5.5 million through February 1, 2007. Borrowings under the new facility will be secured by certain accounts receivable, inventory, equipment and a cash collateral account. Interest under the new facility will be charged at prime plus 0.25% or LIBOR plus 1.75%. At closing, Intervoice borrowed $4.6 million and used the proceeds to repay $4.6 million previously outstanding under its term loan facility. Under the new facility, interest is payable monthly and the principal is due at maturity. Principal payments can be made any time without penalty and the principal outstanding cannot exceed the borrowing base, as defined in the agreement.

 

"We are pleased that our return to profitability and our improved balance sheet have enabled Intervoice to transition to a less expensive and less restrictive financing alternative," said Craig Holmes, CFO of Intervoice. "This is clearly a positive step forward in the company's strategy to strengthen its financial position."