"It's unusual to find a bank that understands technology business, and invests itself in your success as Silicon Valley Bank does," said Thomas M. Brandt, Jr., senior vice president and CFO of TeleCommunication Systems, Inc. "We have been working with Silicon Valley Bank for more than five years and recognize and appreciate all SVB does to help us succeed. This financing is a great example, which took creativity, understanding and cooperation with M&T Bank. We're pleased to be working with both institutions."
The financing comprises a $30 million term loan and a $35 million revolving line of credit. TeleCommunication Systems may also draw an additional $10 million in term financing at its option. Proceeds from the term loan re-paid certain existing indebtedness and helped TeleCommunication Systems with funding of its recently completed acquisitions. The unutilized portion of the term loan and the revolving line of credit are both available to TSYS for working capital and other corporate needs.
"We're proud to be able to help TeleCommunication Systems finance its expansion opportunities, particularly during difficult credit market conditions affecting many domestic and international banks," said Megan Scheffel, senior relationship manager for Silicon Valley Bank. "It's been gratifying to watch TeleCommunication Systems excel over the last several years. Today, we have the capability to offer a full range of services that allow us to help our clients as they grow both in the U.S. and globally, no matter how large they become. We wish TeleCommunication Systems continued success."
Silicon Valley Bank will act as administrative agent for the senior secured credit facilities.
Silicon Valley Bank's experienced technology bankers offer a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide.
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) [TSYS] engineers and delivers highly reliable wireless communications technology. TCS is a leader in wireless text messaging and location-based technology, including E9-1-1 services and commercial applications like navigation that use the precise location of a wireless device, and secure satellite-based communications systems and services. Customers include leading wireless and VoIP carriers around the world, cable MSOs, automotive telematics vendors, and agencies of the U.S. Departments of Defense, State, and Homeland Security. TCS is one of six primary vendors on a $5 billion Army Worldwide Satellite Systems Contract vehicle. For more information, visit www.telecomsys.com.
About Silicon Valley Bank
Founded in 1983 and headquartered in Santa Clara, Calif., Silicon Valley Bank serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group [SIVB], with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System.
SVB Financial Group is also a member of the Federal Reserve System.
About M&T Bank
M&T Bank Corporation [MTB], founded in 1856, is one of the top 20 commercial bank holding companies in the nation, with $69.9 billion in assets and more than 800 branch offices in New York, Pennsylvania, Maryland, New Jersey, Delaware, Virginia, West Virginia and Washington D.C. More information is available at www.mtb.com.