TSS Inc. (NASDAQ:TSSI) has secured a $20 million credit facility from Susser Bank to support its expansion plans in response to growing AI technology demand. The company has leased 212,793 square feet at Georgetown Logistics Park, Texas, as part of its infrastructure expansion strategy to support a recently announced long-term customer agreement.

The five-year credit facility carries an interest rate of one-month term SOFR plus 3.00% annually, with interest-only payments for up to six months before converting to a fully amortizing term loan. The company has also filed a shelf registration statement with the SEC for potential future capital raising flexibility.

Construction has begun at the Georgetown facility, which is expected to be operational in early 2025. The funding will be used specifically for facility improvements to meet projected customer demand in the AI space.

TSS Inc. (NASDAQ:TSSI) ha ottenuto un finanziamento di 20 milioni di dollari da Susser Bank per supportare i suoi piani di espansione in risposta alla crescente domanda di tecnologia AI. L’azienda ha affittato 212.793 piedi quadrati nel Georgetown Logistics Park, Texas, come parte della sua strategia di espansione infrastrutturale per sostenere un accordo con un cliente a lungo termine recentemente annunciato.

Il finanziamento quinquennale ha un tasso di interesse pari al tasso SOFR a un mese più il 3,00% annuo, con pagamenti solo interessi per un massimo di sei mesi prima di convertirsi in un prestito a ammortamento completo. L’azienda ha anche presentato una dichiarazione di registrazione shelf alla SEC per una potenziale flessibilità nel reperire capitali in futuro.

I lavori di costruzione sono iniziati presso la struttura di Georgetown, che si prevede diventi operativa all’inizio del 2025. I fondi saranno utilizzati specificamente per miglioramenti della struttura al fine di soddisfare la domanda prevista dei clienti nel settore AI.

TSS Inc. (NASDAQ:TSSI) ha conseguido un financiamiento de 20 millones de dólares del Susser Bank para apoyar sus planes de expansión en respuesta a la creciente demanda de tecnología de IA. La compañía ha alquilado 212,793 pies cuadrados en el Georgetown Logistics Park, Texas, como parte de su estrategia de expansión de infraestructura para respaldar un acuerdo recientemente anunciado con un cliente a largo plazo.

La línea de crédito a cinco años lleva una tasa de interés de SOFR a un mes más un 3.00% anual, con pagos solo de intereses durante seis meses antes de convertirse en un préstamo totalmente amortizable. La compañía también ha presentado una declaración de registro shelf ante la SEC para una posible flexibilidad en la recaudación de capital en el futuro.

La construcción ha comenzado en la instalación de Georgetown, que se espera esté operativa a principios de 2025. La financiación se utilizará específicamente para mejoras en la instalación para satisfacer la demanda proyectada de los clientes en el espacio de IA.

TSS Inc. (NASDAQ:TSSI)는 AI 기술 수요 증가에 대응하기 위해 확장 계획을 지원하기 위해 Susser Bank로부터 2천만 달러 신용 한도를 확보했습니다. 회사는 최근 발표된 장기 고객 계약을 지원하기 위해 인프라 확장 전략의 일환으로 텍사스 주 조지타운 물류 공원에서 212,793 제곱피트를 임대했습니다.

5년 신용 한도는 1개월 만기 SOFR에 연간 3.00%를 더한 금리를 적용하며, 최대 6개월 동안 이자만 지불한 후 완전 상환 대출로 전환됩니다. 회사는 또한 SEC에 향후 자본 조달 유연성을 위한 선적 등록 주식 선언서를 제출했습니다.

조지타운 시설에서 공사가 시작되었으며, 2025년 초에 운영을 시작할 것으로 예상됩니다. 자금은 AI 분야의 고객 수요를 충족하기 위한 시설 개선에 특별히 사용될 것입니다.

TSS Inc. (NASDAQ:TSSI) a obtenu un crédit de 20 millions de dollars de la Susser Bank pour soutenir ses projets d’expansion en réponse à l’augmentation de la demande en technologie IA. L’entreprise a loué 212 793 pieds carrés au Georgetown Logistics Park, au Texas, dans le cadre de sa stratégie d’expansion des infrastructures pour soutenir un accord récemment annoncé avec un client à long terme.

Cette ligne de crédit sur cinq ans a un taux d’intérêt égal au taux SOFR d’un mois plus 3,00 % par an, avec des paiements d’intérêts uniquement pendant jusqu’à six mois avant de se transformer en un prêt entièrement amortissable. L’entreprise a également déposé un document d’enregistrement de type ‘shelf’ auprès de la SEC pour plus de flexibilité dans le financement futur.

Les travaux de construction ont commencé dans l’établissement de Georgetown, qui devrait être opérationnel début 2025. Le financement sera spécifiquement utilisé pour des améliorations des installations afin de répondre à la demande projetée des clients dans le domaine de l’IA.

TSS Inc. (NASDAQ:TSSI) hat von der Susser Bank eine Kreditfazilität in Höhe von 20 Millionen Dollar gesichert, um seine Expansionspläne in Reaktion auf die wachsende Nachfrage nach KI-Technologie zu unterstützen. Das Unternehmen hat 212.793 Quadratfuß im Georgetown Logistics Park, Texas, angemietet, als Teil seiner Infrastruktur-Erweiterungsstrategie zur Unterstützung eines kürzlich angekündigten Langzeitkundenvertrags.

Die fünfjährige Kreditfazilität hat einen Zinssatz von einem Monat SOFR plus 3,00 % jährlich, mit Zinszahlungen nur für bis zu sechs Monate, bevor es in einen voll amortisierenden Kredit umgewandelt wird. Das Unternehmen hat auch eine Shelf-Registrierungserklärung bei der SEC eingereicht, um potenzielle Flexibilität bei zukünftigen Kapitalaufstockungen zu ermöglichen.

Die Bauarbeiten an der Georgetown-Anlage haben begonnen und sollen Anfang 2025 in Betrieb genommen werden. Die Finanzierung wird speziell für Verbesserungen der Anlage verwendet, um der voraussichtlichen Kundennachfrage im KI-Bereich gerecht zu werden.

Positive


  • Secured $20 million credit facility for expansion


  • Leased 212,793 sq ft facility to support growth


  • Construction already underway with early 2025 operational target


  • Favorable loan terms with 6-month interest-only period


Negative


  • Potential future dilution risk from shelf registration statement


  • Taking on significant debt with new $20M credit facility


  • Additional interest expense burden from new financing


Insights


The $20M debt financing marks a pivotal development for TSS Inc., particularly given its modest market cap of $313M. The terms – SOFR plus 3.00% – are reasonably favorable in the current rate environment, reflecting lender confidence in TSS’s business model. The strategic expansion into a 212,793 sq ft facility in Georgetown Logistics Park demonstrates calculated scaling to meet AI infrastructure demand. The shelf registration filing provides additional financial flexibility without immediate dilution. The interest-only period of 6 months aligns well with the facility’s operational timeline, minimizing cash flow pressure during the build-out phase. This funding structure balances growth capital needs with manageable debt service obligations. The company’s ability to secure traditional bank financing rather than relying on more expensive alternatives suggests strong underlying fundamentals and credible growth projections in the AI infrastructure space.


The facility expansion signifies TSS’s strategic positioning in the critical AI infrastructure supply chain. The 212,793 sq ft space isn’t just about storage – it’s about creating sophisticated power infrastructure essential for AI computing operations. The timing aligns with the industry-wide surge in AI computing demands, particularly for power-intensive applications. The Georgetown location offers strategic advantages in terms of power grid access and logistics. This move positions TSS to capture market share in the rapidly growing AI infrastructure sector, where power management and hardware integration capabilities are becoming increasingly valuable. The operational timeline targeting early 2025 is aggressive but achievable, suggesting strong customer commitments driving the expansion pace.


This financing package represents a well-timed expansion into the booming AI infrastructure market. The company’s ability to secure a major customer agreement requiring substantial facility expansion suggests strong market validation of their capabilities. The shelf registration indicates preparation for potential rapid scaling opportunities, while the bank financing provides immediate execution capability. The AI hardware integration market is experiencing unprecedented growth, driven by data center expansions and enterprise AI adoption. TSS’s focus on power infrastructure positions them in a critical bottleneck area of AI deployment. This expansion could significantly enhance their competitive position in a market where speed-to-deployment and reliable infrastructure are key differentiators.












Secures funding to expand operations and enhance power infrastructure in support of recently announced long-term customer agreement

ROUND ROCK, TX / ACCESSWIRE / January 7, 2025 / TSS, Inc. (NASDAQ:TSSI), a leader in IT hardware and software integration for AI and high-performance computing, today announced it has closed on a $20 million credit facility with Texas-based Susser Bank to support capacity expansion required to meet accelerating demand for AI-enabled technologies.

As previously announced, the company signed a long-term agreement to lease 212,793 square feet of space in the Georgetown Logistics Park located in Georgetown, Texas. This lease is part of the company’s plan to expand its power infrastructure to support expected AI integration growth under its recently announced long-term customer agreement. Drawdowns under the new credit agreement will be used to fund improvements at the Georgetown facility.

The company also filed a shelf registration statement with the Securities and Exchange Commission (the “SEC”). The company believes that filing the shelf registration statement is a prudent corporate housekeeping measure that will provide greater financial flexibility in the coming years. If the company decides to raise capital in a future offering using the shelf registration statement, it will describe the specific details of that future offering in a prospectus supplement that is filed with the SEC.

Darryll Dewan, Chief Executive Officer of TSS Inc. commented, “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. This credit facility supports the development of our operational footprint required by the projected demand from our customer and enables us to pursue new opportunities in the rapidly evolving AI space. Build out of the new space has begun, and we continue to expect to be operational at this location in early 2025.”

Key Terms of the Agreement
The credit facility has a term of five years, and borrowings bear interest at a rate of one-month term SOFR plus 3.00% per annum. Payments will be interest-only for a maximum of six months, converting to a fully amortizing term loan upon completion of construction.

About TSS, Inc.
TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS’s reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world’s leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit www.tssiusa.com.

About Susser Bank
Founded 63 years ago, Susser Bank is a Texas-based company and has operated under the ownership and direction of Susser Banc Holdings Corporation since 2018. The combined entities hold assets exceeding $2.45 billion while maintaining very strong capital and liquidity. The company is led by the Susser family and a legacy of six generations of Texas entrepreneurs. Susser Bank is dedicated to building long-term client relationships and providing outstanding financial solutions that make Texas stronger.

Forward Looking Statements
This press release may contain “forward-looking statements” — that is, statements related to future — not past — events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as “guidance,” “prospects,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company’s future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Contacts:
Hayden IR
James Carbonara (646-755-7412)

Brett Maas (646-536-7331)
[email protected]

TSS, Inc.
Danny Chism, CFO
(512) 310-4908
[email protected]

SOURCE: TSS, Inc.

View the original press release on accesswire.com








FAQ



What is the size and terms of TSS Inc.’s (TSSI) new credit facility?


TSS Inc. secured a $20 million credit facility with a five-year term, bearing interest at one-month term SOFR plus 3.00% annually, with interest-only payments for up to six months before converting to a fully amortizing term loan.


How large is TSSI’s new Georgetown Logistics Park facility?


TSS Inc. has leased 212,793 square feet of space in the Georgetown Logistics Park located in Georgetown, Texas.


When will TSSI’s new Georgetown facility become operational?


The company expects the new Georgetown facility to be operational in early 2025.


What is the purpose of TSSI’s shelf registration statement filing?


The shelf registration statement was filed with the SEC to provide greater financial flexibility for potential future capital raising opportunities.


How will TSSI use the $20M credit facility funds?


The funds will be used to finance improvements at the Georgetown facility to support power infrastructure expansion for AI integration growth under a recently announced long-term customer agreement.