TeleCommunication Systems, Inc. (TCS) , a global leader in mission-critical wireless communication technology, announced it has refinanced $10 million of its long-term debt under an amended bank term loan agreement with SVB Silicon Valley Bank. SVB Silicon Valley Bank is the commercial banking arm of SVB Financial Group .
Term notes issued in March 2006, which were carried net of discount at about $8 million, had 14% per annum interest and were due in March 2009. They were retired early with a five-year SVB bank term loan at a prime-based interest rate, or 8.5% as of today. At the time of the refinancing, there were no borrowings outstanding under the company's revolving line of credit with SVB, which originated in May 2002. The interest rate on any future borrowings under the $22 million revolving credit line has been reduced to the bank's prime rate.
