ATLANTA - KORE Group Holdings, a global leader in Internet of Things (IoT) solutions and connectivity, has announced a significant restructuring of its debt profile alongside its third-quarter financial results. The company's CEO, Romil Bahl, revealed on Monday that KORE has successfully signed agreements to refinance its existing $300 million term loan with a new $185 million term loan. Additionally, the company has secured a strategic investment of $150 million of 13% preferred stock. This move is aimed at reducing KORE's overall debt level and lowering its first lien leverage ratio. The refinancing also introduces a payment-in-kind (PIK) feature for the preferred stock dividend, enhancing the company's cash flow flexibility.
The announcement follows Sunday's earnings call where Charley Brady discussed forward-looking statements and non-GAAP financial information. During the call, Bahl presented key events and achievements for the third quarter, which included a collaboration with a national US retailer on their digital transformation leveraging 5G connectivity. KORE also received industry recognition with the 2023 IoT Evolution LPWAN Excellence Award for their innovative LoRaWAN solution, KORE LPHub. Further emphasizing their commitment to social impact, KORE announced an alliance with GrandPad as part of their IoT for Good initiative.
Financially, KORE reported an increase in revenue by approximately 4% year-over-year from the third quarter of 2022. This growth was attributed primarily to the company's high-margin IoT connectivity business, which included its first full quarter of revenue following the acquisition of Twilio (NYSE:TWLO) IoT.
The refinancing agreement extends the maturity of KORE's term loan to 2028, providing the company with a more manageable debt structure and the ability to pursue strategic growth initiatives. This financial restructuring reflects KORE's proactive approach to capital management and its commitment to long-term sustainability and shareholder value.
The recorded earnings call from Sunday and detailed financial information are available on KORE Group Holdings' Investor Relations page.
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