On October 15, 2026, Asure Software Inc. entered into a significant credit agreement that allows the company to borrow up to $115 million. This agreement is pivotal for the company as it aims to bolster its financial position and facilitate future acquisitions.
The credit agreement includes a term loan facility of $85 million, which was fully drawn upon the closing date. Additionally, it features a $10 million revolving credit facility and a $20 million delayed-draw term loan facility. The company has not yet utilized the revolving or delayed-draw facilities.
Asure Software, based in Austin, Texas, operates in the computer integrated systems design sector, as classified under SIC code 7373. The company is listed on the Nasdaq under the ticker ASUR. This new financial arrangement comes as part of a broader strategy to enhance operational flexibility and support growth initiatives.
According to the filing, the company will begin repaying the initial loan balance in quarterly installments starting April 1, 2027. The repayment schedule is structured to gradually increase over the loan's term, culminating in a final payment due on October 15, 2031.
In conjunction with this new credit agreement, Asure Software has terminated its previous credit agreement with MidCap Financial Trust, settling obligations totaling approximately $62.6 million. This includes principal, interest, and fees associated with the prior agreement.
Furthermore, the company issued 1,206,141 shares of its common stock as part of the consideration for acquiring certain assets from a payroll processing business in the southeastern United States, valued at $10 million. This stock issuance is exempt from registration under the Securities Act.
Overall, this strategic financial maneuver is expected to provide Asure Software with the necessary resources to pursue growth opportunities while maintaining a streamlined debt structure. The company’s approach reflects a proactive stance in a competitive industry, positioning itself for future success.
The filing does not specify what happens next regarding further financial strategies or potential acquisitions.