Rand Worldwide Announces Successful Completion of Debt Refinancing and Declares Special Dividend

Rhea-AI Summary

Rand Worldwide (RWWI) has announced a new credit agreement with its bank consisting of a $10 million line of credit and a $38 million term loan. Both facilities have a five-year duration, with interest tied to the one-month LIBOR rate plus a 1.50% margin. Shareholders will receive a special dividend of $1.00 per share on June 28, 2021, for those on record by June 21, 2021. This restructuring aims to support the company's operations across the design and engineering sectors, strengthening its financial position.

Positive

• Authorization of a special dividend of $1.00 per share.
• Secured $10 million line of credit and $38 million term loan to enhance financial stability.

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• None.

Today, Rand Worldwide Inc. (OTCBB: RWWI), the nationwide technology experts for design, engineering, simulation and facilities management, announced that it has entered into an amended and restated credit agreement with its bank consisting of two credit facilities which replace the Company’s previous credit agreements. The first facility is a five-year $10 million line of credit, secured by all assets of the Company with borrowing levels subject to borrowing base limits with interest set at the one-month LIBOR rate plus a margin of 1.50%. The second facility is a five-year, $38 million term note loan with scheduled monthly principal payments of $633,333.33 over its five-year term, and interest paid monthly based on one-month LIBOR rate plus a margin of 1.50%. In connection with this financing transaction, the Company’s Board of Directors authorized a special dividend of $1.00 per share of the Company’s common stock to be paid on June 28, 2021 to the Company’s shareholders of record as of June 21, 2021.

About Rand Worldwide

Rand Worldwide is one of the world’s leading professional services and technology companies for the engineering community, targeting organizations in the building, infrastructure, and manufacturing industries. The company advances the way organizations design, develop, and manage building, infrastructure, and manufacturing projects. Fortune 500 and Engineering News Record's Top 100 companies work with Rand Worldwide to gain a competitive advantage through technology consulting, implementation, training, and support services. One of the world’s largest integrators of Autodesk software, the company also provides facilities management software from ARCHIBUS, Ansys simulation services and software via the Rand SIM team, CAD and PLM courseware through their ASCENT division and provides training and consulting solutions on Dassault Systèmes and PTC products. For more information, visit rand.com.

Any and all trademarks making reference to or related to Rand Worldwide are registered and/or owned by Rand Worldwide, Inc., and/or its subsidiaries, affiliates, and/or other legal holders. All other company, product names, logos, and brands are property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210611005385/en/

FAQ

What is the special dividend amount for Rand Worldwide (RWWI)?

Rand Worldwide has authorized a special dividend of $1.00 per share.

When will the dividend be paid to shareholders of Rand Worldwide (RWWI)?

The dividend will be paid on June 28, 2021, to shareholders of record as of June 21, 2021.

What are the terms of the new credit agreement for Rand Worldwide (RWWI)?

The credit agreement includes a $10 million line of credit and a $38 million term loan, both with a five-year term.

What is the interest rate on Rand Worldwide's (RWWI) new credit facilities?

The interest rate is based on the one-month LIBOR rate plus a margin of 1.50%.