April 9, 2015 – CTPartners has secured a $12.5 million second-lien note purchase agreement with a publicly traded insurance company, extending the company a much-needed financial lifeline. The notes are issuable in two tranches of $6.25 million with the first portion expected to close on Friday. The second tranche of $6.25 million is scheduled to close 90 days after the first funding, subject to certain conditions set forth in a note purchase agreement structured between CTPartners and its lender. The notes bear interest at an adjusted LIBOR rate, currently pegged at nine percent, with a maturity date of 2020. The proceeds will be used, according to the company, for general corporate purposes and working capital needs. Shares in CTPartners are off by more than 80 percent in just the last four months, dropping from $24 in December to around $4 recently. It's market cap is now just above $30 million. CTPartners was rocked by allegations of sexual discrimination bias late last year and it's subsequent image problems have translated into cash flow problems resulting from mass high-level personnel defections and client departures. The company's CEO, Brian Sullivan, resigned under pressure several weeks ago after the company aborted two planned stock sales and revised its financial guidance downward which deepened its current financial crisis.
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