Urgently Announces Capital Structure Improvements and Secures up to $20 Million in New Financing
Urgently (Nasdaq: ULY) has secured significant capital structure improvements and new financing to support its business growth. The company has entered into a new credit agreement for up to $20 million with MidCap Financial, which will be used to repay existing first lien lenders and advance its digital roadside assistance services.
Additionally, funds managed by Highbridge Capital Management, Onex Credit, and Whitebox Advisors have agreed to forego certain fees under second lien agreements in exchange for 1,358,073 shares of Urgently's common stock. The second lien term loans have been extended until July 31, 2026. Chardan acted as exclusive financial advisor for the transaction.
Urgently (Nasdaq: ULY) ha ottenuto significativi miglioramenti nella struttura del capitale e nuovi finanziamenti per supportare la crescita del suo business. L'azienda ha stipulato un nuovo accordo di credito fino a 20 milioni di dollari con MidCap Financial, che sarà utilizzato per rimborsare i creditori di primo grado esistenti e per potenziare i suoi servizi di assistenza stradale digitale.
Inoltre, i fondi gestiti da Highbridge Capital Management, Onex Credit e Whitebox Advisors hanno accettato di rinunciare a determinate commissioni nell'ambito degli accordi di secondo grado in cambio di 1.358.073 azioni delle azioni ordinarie di Urgently. I prestiti a termine di secondo grado sono stati prorogati fino al 31 luglio 2026. Chardan ha agito come consulente finanziario esclusivo per la transazione.
Urgently (Nasdaq: ULY) ha asegurado mejoras significativas en su estructura de capital y nuevo financiamiento para apoyar el crecimiento de su negocio. La empresa ha firmado un nuevo acuerdo de crédito por hasta 20 millones de dólares con MidCap Financial, que se utilizará para pagar a los prestamistas de primer grado existentes y avanzar en sus servicios de asistencia en carretera digital.
Además, los fondos gestionados por Highbridge Capital Management, Onex Credit y Whitebox Advisors han acordado renunciar a ciertas tarifas bajo acuerdos de segundo grado a cambio de 1,358,073 acciones de las acciones ordinarias de Urgently. Los préstamos a plazo de segundo grado se han extendido hasta el 31 de julio de 2026. Chardan actuó como asesor financiero exclusivo para la transacción.
Urgently (Nasdaq: ULY)는 비즈니스 성장을 지원하기 위해 상당한 자본 구조 개선과 신규 자금을 확보했습니다. 이 회사는 MidCap Financial과 2000만 달러까지의 신용 계약을 체결했으며, 이는 기존의 1순위 대출자를 상환하고 디지털 도로 지원 서비스를 발전시키는 데 사용될 것입니다.
또한, Highbridge Capital Management, Onex Credit 및 Whitebox Advisors가 관리하는 자금은 2순위 계약 하의 특정 수수료를 포기하고 1,358,073주의 Urgently의 보통주를 받기로 합의했습니다. 2순위 만기 대출은 2026년 7월 31일까지 연장되었습니다. Chardan은 이번 거래의 독점 금융 자문 역할을 했습니다.
Urgently (Nasdaq: ULY) a sécurisé des améliorations significatives de sa structure de capital et un nouveau financement pour soutenir la croissance de son entreprise. La société a conclu un nouvel accord de crédit pouvant aller jusqu'à 20 millions de dollars avec MidCap Financial, qui sera utilisé pour rembourser les prêteurs de premier rang existants et pour faire avancer ses services d'assistance routière numérique.
De plus, les fonds gérés par Highbridge Capital Management, Onex Credit et Whitebox Advisors ont accepté de renoncer à certaines frais dans le cadre des accords de deuxième rang en échange de 1.358.073 actions des actions ordinaires d'Urgently. Les prêts à terme de deuxième rang ont été prolongés jusqu'au 31 juillet 2026. Chardan a agi en tant que conseiller financier exclusif pour la transaction.
Urgently (Nasdaq: ULY) hat erhebliche Verbesserungen der Kapitalstruktur und neue Finanzierungen gesichert, um das Unternehmenswachstum zu unterstützen. Das Unternehmen hat eine neue Kreditvereinbarung über bis zu 20 Millionen Dollar mit MidCap Financial getroffen, die zur Rückzahlung bestehender Erstpfandgläubiger und zur Förderung seiner digitalen Pannenhilfe-Dienste verwendet wird.
Zusätzlich haben von Highbridge Capital Management, Onex Credit und Whitebox Advisors verwaltete Fonds zugestimmt, auf bestimmte Gebühren im Rahmen von Zweitpfandvereinbarungen zu verzichten, im Austausch für 1.358.073 Aktien von Urgentlys Stammaktien. Die Zweitpfand-Darlehen wurden bis zum 31. Juli 2026 verlängert. Chardan fungierte als exklusiver Finanzberater für die Transaktion.
- Secured new $20M credit facility
- Extended second lien term loans to July 2026
- Reduced debt by converting fees into equity
- Improved capital structure flexibility
- Shareholder dilution from issuing 1.36M new shares
Insights
Urgently's announcement reveals a company undertaking significant financial restructuring amid what appears to be substantial financial pressure. The secured
The debt restructuring includes two critical components: (1) the new MidCap Financial facility replacing first lien debt, and (2) the conversion of second lien fees into equity while extending those loans to July 2026. The issuance of 1,358,073 new shares represents substantial dilution - approximately
This financial engineering suggests Urgently has been struggling with debt service requirements. The willingness of second lien lenders to accept equity in a company trading at
The absence of specific financial metrics in this announcement is notable. There's no disclosure of existing debt levels, interest rates on the new facility, or current cash burn rate. The company frames this as supporting growth initiatives, but the structure suggests this is more about survival and buying operational runway.
For investors, this represents a high-risk situation with both potential red flags (severe dilution, debt-for-equity swaps) and possible turnaround catalysts (extended maturities, institutional investor support). The involvement of sophisticated investors like Highbridge provides some validation, but their participation appears to be defensive in nature - protecting existing investments rather than making fresh commitments.
Additional capital structure improvements and financing will support business growth initiatives
VIENNA, Va., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Urgent.ly Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading provider of digital roadside and mobility assistance technology and services, announced today that it has reached an agreement with its lenders resulting in significant capital structure improvements. Urgently has entered into a new credit agreement for an asset-based revolving credit facility for up to
“We are pleased to have announced our new credit facility, as well as the repayment of a significant amount of debt to our existing lenders,” said Tim Huffmyer, Chief Financial Officer of Urgently. “The new debt facility will support the business as we continue to transform the legacy roadside assistance market and to develop new connected mobility assistance services on a global scale. We appreciate MidCap Financial’s partnership and relationship-oriented approach.”
Garrett Fletcher, President of Structured Finance at MidCap Financial, commented, “Urgently is a leading mobility services platform that utilizes technology to improve the consumer roadside experience. Given their continued improvement in financial performance, we are excited to partner with Urgently and support their ongoing efforts to capitalize and further strengthen their business.”
Certain funds managed by Highbridge Capital Management, LLC (“Highbridge”), Onex Credit and Whitebox Advisors have also agreed to forego the repayment of certain fees under the company’s second lien agreements in exchange for the issuance of 1,358,073 shares of Urgently’s common stock and an extension of its second lien term loans until July 31, 2026.
“We appreciate the support of Highbridge, Onex Credit and Whitebox Advisors as they extend their partnership with the Urgently team,” said Matt Booth, CEO of Urgently. “Their continued support is indicative of the confidence that exists among leading financial, automotive, mobility and strategic investors in the strong business we’ve built. These capital structure improvements will allow us to strengthen our commitment to our partners, service providers and consumers, as we continue to transform the market with our market-leading digital platforms, products and solutions.”
Chardan served as exclusive financial advisor to Urgently to support the transaction.
About Urgently
Urgently is focused on helping everyone move safely, without disruption, by safeguarding drivers, promptly assisting their journey, and employing technology to proactively avert possible issues. The company’s digitally native software platform combines location-based services, real-time data, AI and machine-to-machine communication to power roadside assistance solutions for leading brands across automotive, insurance, telematics and other transportation-focused verticals. Urgently fulfills the demand for connected roadside assistance services, enabling its partners to deliver exceptional user experiences that drive high customer satisfaction and loyalty, by delivering innovative, transparent and exceptional connected mobility assistance experiences on a global scale. For more information, visit www.geturgently.com.
For media and investment inquiries, please contact:
Press: media@geturgently.com
Investor Relations: investorrelations@geturgently.com
About MidCap Financial
MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to companies across all industries. As of December 31, 2024, MidCap Financial provides administrative or other services for over
For more information about MidCap Financial, please visit http://www.midcapfinancial.com.
For more information about Apollo, please visit http://www.apollo.com.
*Including commitments managed by MidCap Financial Services Capital Management LLC, a registered investment adviser, as reported under Item 5.F on Part 1 of its Form ADV
Forward-Looking Statements
This press release contains or may contain “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Urgently’s future financial or operating performance. Such statements are based upon current plans, estimates and expectations of management of Urgently in light of historical results and trends, current conditions and potential future developments, and are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “predict,” “target,” “believe,” “continue,” “estimate” or “expect” or the negative of these words or other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than historical facts, including, without limitation, statements regarding Urgently’s ability to successfully deploy the capital from the new debt facility and repay its new and existing debt facilities, are based on the current assumptions of Urgently’s management and are neither promises nor guarantees, but involve a significant number of factors that may cause our actual performance or achievements to be materially different from any future performance or achievements stated or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”), including in our annual report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 29, 2024, our quarterly reports on Form 10-Q, including our quarterly report on Form 10-Q for the quarter ended September 30, 2024, which was filed with the SEC on November 13, 2024, and other filings and reports that we may file from time to time with the SEC. All forward-looking statements reflect Urgently’s beliefs and assumptions only as of the date of this press release. Urgently undertakes no obligation to update forward-looking statements to reflect future events or circumstances.
FAQ
What is the size of Urgently's (ULY) new credit facility with MidCap Financial?
How many shares did Urgently (ULY) issue in the debt restructuring deal?
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What will Urgently (ULY) use the new $20 million credit facility for?
