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ROUND ROCK, TX - TSS, Inc. (NASDAQ:TSSI), a company specializing in IT hardware and software integration, has secured a $20 million credit facility from Susser Bank. This financial move, announced today, is aimed at expanding the company's capacity to meet the growing demand for AI-enabled technologies. The announcement comes as TSS demonstrates remarkable growth, with revenue surging 199.3% to $122.53M in the last twelve months. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, supporting its expansion strategy.
The credit agreement, which spans five years, will fund improvements at TSS's new leased space in Georgetown Logistics Park, Texas. The company plans to enhance its power infrastructure to support the expected growth stemming from a long-term customer agreement. Interest rates for the credit facility are set at one-month term SOFR plus 3.00% per annum, with initial interest-only payments transitioning to a fully amortizing term loan post-construction.
In conjunction with this financial strategy, TSS has filed a shelf registration statement with the Securities and Exchange Commission, which the company believes will provide greater financial flexibility for future capital raising activities.
Darryll Dewan, CEO of TSS Inc., stated, "We are pleased to expand our relationship with Susser Bank, and we appreciate their support. Our ability to expand our physical capacity with bank financing is a testament to the credibility of our growth plan." He added that the build-out of the new space has begun, with operations expected to commence early this year.
Susser Bank, a Texas-based institution with over six decades of experience and assets exceeding $2.45 billion, is supporting TSS's strategic development. This funding arrangement underscores the bank's commitment to fostering long-term client relationships and contributing to the economic strength of Texas.
This announcement is based on a press release statement and provides insights into TSS's financial and operational strategies as the company positions itself to capitalize on opportunities within the AI sector. InvestingPro analysis reveals the company's robust financial health score of 3.53 (rated as GREAT), with an impressive one-year return of 4,420%. For deeper insights into TSS's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 16 additional ProTips and detailed financial metrics.
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