The Cobalt Group Secures $10 Million Revolving Credit Facility
SEATTLE--March 14, 2001--The Cobalt Group , a leading provider of e-business products and services to the automotive industry, announced today that it has secured a $10 million revolving credit facility from Silicon Valley Bank of Santa Clara, Calif.
This financing, combined with $15 million in equity received in the fourth quarter of last year, gives Cobalt the capital resources it needs to continue its growth and drive to positive cash flow from operations.
"We are delighted with Silicon Valley Bank's commitment of a $10 million credit facility. It is a strong vote of confidence from one of the nation's leading technology financial lenders," said David Snyder, executive vice president and CFO of The Cobalt Group. "This additional financing and the continued success of our business model support our confidence in achieving positive cash flow from operations without having to raise new equity."
"We are impressed with Cobalt's business model and commitment to executing it, and we are pleased to extend this financing to help them achieve their financial goals," said Don Chandler, vice president of Silicon Valley Bank's Seattle regional office. "Silicon Valley Bank is focused on financing high-growth technology companies in targeted and lucrative niches. We see Cobalt's growth potential and position in the automotive e-business industry as a good fit for us."
The $10 million loan matures in March 2003. Advances will be limited to 80 percent of Cobalt's eligible resources. Cobalt is paying fees customary for transactions of this type but has not been required to grant any warrants on its shares to Silicon Valley Bank in connection with this loan. Pricing of the financing is not disclosed.