June 22, 2010 (FinancialWire) — Global Axcess Corp. (OTCBB: GAXC), a provider of self-service kiosk solutions, said that it has signed an agreement for a $17 million credit facility from Fifth Third Bank (NASDAQ: FITB), reducing the company's cost of debt and extending its ability to fund anticipated growth in both the ATM and DVD kiosk business lines.

The credit facility includes a $5 million "Term Note" to pay off SunTrust and Proficio bank balances. This term note carries a three-year term, amortized over three years. It also includes a $2 million "Draw Note" to fund DVD inventory purchases for the recent grocery store chain agreement and other anticipated new clients. This draw note carries an 18-month amortization term subsequent to each drawdown.

Also included is a $10 million "Equipment Line" to fund the purchase of DVD kiosks for the recent grocery store chain agreement as well as future purchases or acquisitions of DVD kiosks and ATMs. This equipment line carries a term of one-year interest-only followed by an amortization of three years subsequent to each drawdown.

All components of the credit facility carry interest of LIBOR plus up to 400 basis points or 5.5%, whichever is greater. The lines are cross-collateralized by the company's eligible inventory, equipment including ATM and DVD Kiosks, all business assets, excluding collateral not already secured by leases, and assignment of existing and future contracts and purchase agreements.

In addition, Global Axcess will be entering into a SWAP agreement to lock in the Equipment Line rates (currently estimated at 6.75%) 12 months after each drawdown.

As a result of the closing of the Term Note and the payoffs of SunTrust and Proficio, the company expects to record a one-time, non-cash expense of around $60,000 during the second quarter of 2010, relating to accelerated amortization expenses for the loan fees paid on these two notes. Additionally, the company expects to record $40,000 of prepayment fees in connection with the early payment of the notes to SunTrust and Proficio.

Florida-based Global Axcess is a provider of self-service kiosk services in the United States. The company provides turnkey ATM and other self-service kiosk management solutions that include cash and inventory management, project and account management services.

Global Axcess Corp currently owns, manages or operates more than 4,500 ATMs and other self-service kiosks in its national network spanning 43 states.

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