Rimini Street Announces Additional Repurchase of $10 Million Par Value of Series A Preferred Stock

Rhea-AI Summary

Rimini Street (Nasdaq: RMNI) has successfully completed repurchases of $15 million par value of Series A preferred stock, costing $13.45 million, or 89.7% of par value. The repurchases, made on October 30, 2020, and January 5, 2021, aim to lower cost of capital, enhance cash flow, and reduce obligations related to Series A preferred stock. The transaction terms also waived make-whole dividends until the non-call date of July 19, 2021. CEO Michael L. Perica mentioned ongoing evaluations of capital markets for further opportunities to optimize the company’s structure for shareholders.

Positive

• Repurchase of $15 million in Series A preferred stock lowers cost of capital.
• Transaction enhances cash flow and reduces Series A preferred stock obligations.
• Potential for further optimization of capital structure benefiting shareholders.

Negative

• None.

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced the completion of repurchases totaling $15 million par value of Series A preferred stock at an aggregate purchase price of $13.45 million, or 89.7% of par value. Repurchases of $5 million took place on October 30, 2020 and $10 million on January 5, 2021. As part of the transaction terms, the requirement to pay “make-whole” dividends through the end of the “non-call” date of July 19, 2021, was waived and the repurchased shares were retired. Please see Rimini Street’s SEC 8-K filings made on November 2, 2020, and January 6, 2020, which include copies of the stock purchase agreements, for additional information.

“The repurchase of the preferred stock presented us with an opportunity to lower our cost of capital, increase cash flow and reduce the Series A preferred stock obligations. We continue to evaluate the capital markets for additional opportunities to lower our cost of capital and optimize our capital structure for the benefit of shareholders,” stated Michael L. Perica, chief financial officer, Rimini Street.

Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner. The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. To date, more than 3,700 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries have relied on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit http://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn. (IR-RMNI)

Forward-Looking Statements

Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “seem,” “seek,” “continue,” “future,” “will,” “expect,” “outlook” or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the duration of and operational and financial impacts on our business of the COVID-19 pandemic and related economic impact, as well as the actions taken by governmental authorities, clients or others in response to the COVID-19 pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or in the government inquiry or any new litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the terms and impact of our outstanding 13.00% Series A Preferred Stock; changes in taxes, laws and regulations; competitive product and pricing activity; difficulties of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS), Rimini Street Advanced Database Security, and services for Salesforce Sales Cloud and Service Cloud products, in addition to other products and services we expect to introduce in the near future; the loss of one or more members of Rimini Street’s management team; uncertainty as to the long-term value of Rimini Street’s equity securities; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on November 5, 2020, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.

© 2021 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.

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FAQ

What was the total amount of Series A preferred stock repurchased by Rimini Street?

Rimini Street repurchased a total of $15 million par value of Series A preferred stock.

How much did Rimini Street pay for the preferred stock repurchases?

The total aggregate purchase price for the repurchased preferred stock was $13.45 million.

What was the impact of the stock repurchase on Rimini Street's cost of capital?

The stock repurchase is expected to lower Rimini Street's cost of capital.

When were the preferred stock repurchases made?

The repurchases occurred on October 30, 2020, and January 5, 2021.

What did Rimini Street's CFO state about the stock repurchase?

CFO Michael L. Perica stated that the repurchase reduces obligations related to Series A preferred stock and improves cash flow.