TSS, Inc. Secures $20 Million Credit Facility with Susser Bank for Expansion

TSS, Inc. (NASDAQ: TSSI) has recently announced its entry into a material definitive agreement through its wholly owned subsidiary, VTC, L.L.C., with Susser Bank for a Credit Agreement. This agreement provides for a $20,000,000 term loan facility with an option for additional uncommitted incremental term loans up to $5,000,000.

The Credit Agreement involves VTC entering into a promissory note with Susser for the original principal amount of $20,000,000. The note accrues interest at a rate based on Texas law or a specified percentage above the Adjusted Term SOFR, with payments due monthly.

Under the agreement, any incremental term loan must be a minimum of $1,000,000 and subject to the same terms as the initial note. TSS, Inc. and VTC have guaranteed the obligations under this agreement and provided a lien on their assets as security.

The proceeds of the term loan will be utilized for enhancements at VTC’s Georgetown location and general working capital purposes. Full documentation of this agreement and related transactions can be found in the Company’s filed exhibits.

Moreover, on January 7, 2025, TSS, Inc. also filed a universal shelf registration statement on Form S-3 with the SEC. This registration would allow the company to potentially raise up to $150 million through the issuance of various securities. TSS, Inc. views this registration as a strategic financial decision providing flexibility for future financing activities.

In a related event, TSS, Inc. issued a press release on the same day announcing the transactions with Susser Bank and the registration statement filing. This move is part of the company’s strategy to support its expanding operations following a recent long-term customer agreement.

With the credit facility secured and the registration statement filed, TSS, Inc. looks to streamline operations and enhance its capacity to meet growing demand for AI-enabled technologies. The management believes that these developments will not only accommodate the current market needs but also provide flexibility in future financial endeavors.

For further details and specifics of the agreement, interested parties are encouraged to refer to the company’s relevant financial statements and exhibits. TSS, Inc. continues to position itself for growth and adaptability in the evolving technology landscape.

It is noteworthy that this article is based on an 8-K SEC filing by TSS, Inc. and press release issued by the company on the mentioned dates.

If you would like to know more, you can find the original document on the SEC website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read TSS’s 8K filing here.

TSS Company Profile

TSS, Inc offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments.