Motricity Inc., a provider of mobile Internet services, last week announced that it signed a $20 million term loan financing agreement with High River Limited Partnership. Shares nudged higher in this morning’s trade, moving off momentum from the news.
High River is beneficially owned by billionaire investor Carl C. Icahn, who beneficially owns 14.6% of Motricity’s outstanding shares. The company said that the agreement with High River has been unanimously approved by the disinterested directors of the company’s board of directors.
Motricity used part of the proceeds from the term loan to repay in full the amounts outstanding under its credit facility with Silicon Valley Bank.
Motricity also announced last week that it retained the services of GCA Savvain Advisors to help it in exploring strategic options, including a possible sale. The company is also exploring a number of financing options. Motricity’s interim CEO, Jim Smith, said last week that the company has a strong business model and it believes that exploring strategic options will help in delivering enhanced value for shareholders and customers. Smith also said that the company is pleased to have secured financing that will help it achieve its goals by strengthening its balance sheet and funding growth.
Motricity shares rose sharply in the previous trading session on Friday. The stock ended the day 4.84% higher at $1.95.
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