Inseego Voluntarily Pays-Off And Terminates Asset-Backed Loan Facility To Improve Capital Structure Flexibility And Meaningfully Reduce Financing Costs
Portfolio Pulse from Benzinga Newsdesk
Inseego Corp. has voluntarily paid off and terminated its asset-backed loan facility with Siena Lending Group to enhance capital structure flexibility and reduce financing costs. This move eliminates the monthly fees and interest expenses on a principal amount of $8.5 million, saving the company $1.9 million in 2023 alone. With improved liquidity and financial performance, Inseego believes it can meet its working capital needs more efficiently. The company also paid termination fees and an exit fee to South Ocean Funding, LLC and North Sound Ventures, LP, affiliates holding over 5% of Inseego's stock.
April 18, 2024 | 8:12 pm
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Inseego Corp. has paid off its asset-backed loan, eliminating monthly fees and interest, which is expected to improve its financial flexibility and reduce costs.
By paying off the asset-backed loan facility, Inseego Corp. has removed a significant financial burden in terms of monthly fees and interest expenses. This action directly impacts the company's bottom line by reducing costs and improving its capital structure flexibility. The elimination of the lien on the company's assets further enhances its ability to manage and allocate resources efficiently. Given the company's improved liquidity and financial performance, this move is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price.
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