BlueSquare is pleased to have completed a Hybrid financial transaction with Excel Corporation (EXCC), wholly-owned subsidary, Payprotec Oregon, LLC dba Securus Payments. Securus executed new financing arrangements with BlueSquare’s funding arm, BlueAcre Ventures, LLC whereby Securus sold $100,000 of its monthly residuals for an immediate cash payment of $2.8 million, with the ability to receive additional cash payments totaling $400,000 over the next three years. BlueAcre also loaned $1.2 million to the Company under a promissory note with interest rate reductions based on the achievement of certain milestones with respect to signing new merchant customer applications under a newly formed ISO Agreement with BlueSquare. Excel Corporation’s new CEO and President, T. A. “Kip” Hyde, Jr. stated, “When our new CFO, Bob Winspear and I joined Excel in mid-May, we recognized that our first priority was the restructuring and repurchase of the merchant portfolio residual base previously sold by our Securus subsidiary. After evaluating multiple offers, the unique hybrid residual sale and term loan financing structure provided to us by BlueAcre Ventures was clearly the most financially beneficial transaction for the Company, maximizing both the initial cash payment and retention of our most valuable current asset, Securus’ merchant portfolio. In addition, BlueAcre’s processing affiliate, BlueSquare Resolutions brings a number of new sales tools and strategic benefits, unavailable from our other bidders. Completing this series of transactions was a team effort, and sets a firmer financial foundation for the Company to continue growing. We look forward to growing our merchant sales and leasing business with both our current primary partner, First Data Merchant Services, and new partner, BlueSquare Resolutions.”
Additional information regarding this financing may be found in Excel Corporation’s Report on Form 8-K, filed with the Securities and Exchange Commission (SEC) on July 7, 2014 and may be obtained from the SEC’s Internet website at www.sec.gov.