SouthPeak Interactive has signed an agreement with SunTrust Banks to extend its revolving line of credit through to November 30, 2010.
The deal will see SouthPeak increase its credit facility to $8.0 million. The amendment to SouthPeak’s previous agreement with SunTrust was executed on February 17, 2010.
Under its previous agreement with SunTrust, SouthPeak had a $7.5 million revolving line of credit that matured on December 31, 2009, but was extended on a month-to-month basis.
“The loan extension improves our flexibility in managing our capital structure and provides added security for executing on our growth strategy,” said Melanie Mroz, SouthPeak’s president and CEO. “We believe that securing this additional access to capital and improving the maturity terms puts us on track to address our independent auditor’s going concern qualification outlined in our most recent 10-Q filing.”