IceWEB, Inc. (OTCBB:IWEB) (www.IceWEB.com)
today announced that the company has received a commitment approval from
Wells Fargo Business Credit to refinance its current accounts receivable
securitization facility under terms that are much more favorable to the
Company. The future borrowing capacity will be limited only by IceWEB’s
total accounts receivables deemed valid by the lender. Consequently, as
the Company’s accounts receivables increase,
available funding under the line will also rise. The variable interest
rate will be equal to the Prime Rate published in the Wall Street
Journal, plus a margin of 0.05% (half percent).
In anticipation of closing the transaction expeditiously, Wells Fargo
has filed a blanket UCC-1. The transaction is subject to customary due
diligence and is expected to close in the next 45 days.
“This refinancing represents a critical step
forward for IceWEB in strengthening our balance sheet and improving our
monthly cash flow. Moreover, we anticipate that it will represent
savings of approximately $700,000 in interest expense over the course of
the next 12 months, while also providing essential capital to fund
several large upcoming projects in our pipeline.”
About IceWEB, Inc.
Headquartered just outside of Washington, D.C., IceWEB manufactures and
markets storage solutions and on-line application services. Additionally
it is a leading source for best-of-class security products, services and
solutions offered in partnership with a wide range of global technology
leaders. Its customer base includes U.S. government agencies, enterprise
companies, and small to medium sized businesses (SMB). For more
information, please visit www.IceWEB.com.
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: Except for historical information, all of the
statements, expectations and assumptions contained in the foregoing are
forward looking statements that involve a number of risks and
uncertainties. It is possible that the assumptions made by
management are not necessarily the most likely and may not materialize.
In addition, other important factors that could cause actual results
to differ materially include the following: business conditions and the
amount of growth in the computer industry and general economy;
competitive factors; ability to attract and retain personnel, including
key sales and management personnel; the price of the Company's stock;
and the risk factors set forth from time to time in the Company's SEC
reports, including but not limited to its annual report on Form 10-K and
its quarterly reports on Forms 10-Q; and any reports on Form 8K. IceWEB
takes no obligation to update or correct forward-looking statements.
