Digital Signage SaaS provider Creative Realities to restructure debt through a $20 million revolving credit facility

LOUISVILLE, Ky., May 09, 2024 — Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a provider of digital signage and media solutions, has signed a non-binding commitment letter with First Merchants Bank (“First Merchants”) for a $20 million senior secured revolving credit facility (the “Revolver”) with a $5 million accordion feature.

A portion of the funds available from the Revolver will, upon closing, pay off all existing indebtedness of the Company. Along with closing costs and ancillary fees, the total amount of initial drawn funds on the Revolver is anticipated to be approximately $14.5 million at closing.

Additional terms are disclosed in the Company’s Current Report on Form 8-K filed with the SEC on the date of this release. The parties intend to consummate the Revolver on or after May 17, 2024, subject to the completion of First Merchants’ due diligence, definitive documentation and customary terms and conditions.

“I’m very pleased to announce our intent to refinance the Company’s credit facilities with First Merchants as soon as next week,” said Rick Mills, Chief Executive Officer. “The contemplated credit facility with First Merchants provides a conventional revolver structure without prepayment penalties and eliminates fixed amortization payments, allowing the flexibility to draw as needed for growth capital as well as to reduce interest expense going forward.

We are focused on de-levering the Company and taking appropriate steps to strengthen the balance sheet and migrate to an optimal capital structure. This new facility will accomplish both – and prepares us for the next stage in CRI’s growth trajectory.

Through performance, the Company has availed itself of the opportunity to refinance despite headwinds and uncertainty in debt markets.

We also want to take this opportunity to thank Slipstream Communications, LLC, and its parent company, Pegasus Capital Advisors, for supporting management’s vision to build a world-class digital signage and media platform. We look forward to an ongoing relationship with Slipstream as a significant shareholder.”

About Creative Realities, Inc.
Creative Realities helps clients use place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. The Company designs, develops and deploys digital signage experiences for enterprise-level networks, and is actively providing recurring SaaS and support services across diverse vertical markets, including but not limited to retail, automotive, digital-out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues.