STAMFORD, Conn.--(BUSINESS WIRE)--MTM Technologies, Inc. (MTMC) (MTM or the Company), today announced that, on June 12, 2015: (1) Columbia Partners, L.L.C. Investment Management (Columbia), on behalf of its pension fund clients, purchased control of the Company; (2) the Company extended the term of its supply chain financing facility with Global Technology Finance LLC (GTF); (3) the Company closed on a new debt term facility with Enhanced Credit Supported Loan Fund, L.P. (Enhanced); and (4) the Company received a new cash investment of $7 million from Columbia.
At the closing:
- MTM's former preferred stockholders canceled all of their MTM unsecured debt;
- MTM's former preferred stockholders converted all of their MTM preferred stock into MTM common stock and then sold their MTM common stock and all of their MTM debt to Columbia; and
- Columbia then (1) exchanged all of its MTM debt for new convertible Series AA Preferred Stock and (2) contributed $7 million of new funds to MTM in exchange for new convertible Series BB Preferred Stock.
Simultaneously with Columbia's purchase of MTM:
- MTM extended the term of its supply chain financing facility with GTF for five years; and
- MTM entered into a new, 5-year term loan facility with Enhanced and used a portion of the proceeds of such facility to repay its prior term loan facility with GTF.
Following these transactions, the Enhanced term loan is MTM's only outstanding indebtedness.
“This is a very exciting time for MTM,” said Steve Stringer, President and CEO of MTM. “Columbia has been an incredible supporter of MTM for almost ten years and we look forward to continuing this strong relationship. In addition, we are pleased to partner with Enhanced via our new term loan facility, as well as continuing our beneficial arrangement with GTF.”
“We are very excited to be partnering with Steve Stringer and the MTM team” said Jason Crist, Managing Director of Columbia. “We believe strongly in the business and the management team and believe they are very well positioned to provide continued best of class service to existing and new customers. We are also very fortunate to have great and flexible financial partners in GTF and Enhanced.”
About MTM Technologies, Inc.: MTM Technologies, Inc., is a leading national provider of next-generation IT solutions and services to Global 2000, enterprise organizations, and mid-size companies. As a national thought-leader around cloud, data center infrastructure, and mobility, MTM partners with industry-leading technology providers including Cisco, Citrix, NetApp, EMC, and Microsoft. With their highly-certified engineering and architecture teams, MTM Technologies helps customers directly align their IT goals around the business organization. Service areas include complete infrastructure managed services, technical consulting (cloud, virtualization, data center design, enterprise mobility, data management), professional IT staffing, platform design and implementation. For more information, visit us at www.mtm.com. Also follow us on Twitter @MTM_INC for the latest updates
About Columbia Partners, L.L.C. Investment Management: Columbia Partners is an SEC-registered investment advisor with approximately $3 billion under management. Through its Private Capital team formed in 2004, it invests in technology driven growth companies and select funds. The Private Capital team has decades of investment, transactional and operational experience and currently manages over $400 million in investments across several portfolio companies and funds.