Nxt-ID, Inc.  announced the closing of a new $16 million senior secured term loan due 2023  through Sagard Credit Partners LP ("SCP"). The Company will use the proceeds from the Term Loan to refinance its existing revolving loan facility and to pay for accrued interest and costs associated with the refinancing. In addition, the Term Loan proceeds will also provide ongoing working capital, funds for future capital expenditures, and capital for general corporate purposes

Key features of the Term Loan include:

• Interest rate of LIBOR + 9.5%, resulting in a savings in annual interest expense of approximately $2 million a year as compared to the terms and conditions of the previous revolving loan facility and based on current interest rates;
• Maturity date of May 24, 2023;
• No mandatory debt amortization
• Issuance of two Common Stock Purchase Warrants to the Lender. Each Warrant is exercisable for an aggregate of 244,081 shares of the Company's Common Stock. Each Warrant will be exercisable beginning on May 24, 2018, and will be exercisable for a period of five years. The exercise price per Warrant Share, is $3.90 for the first Warrant and $4.88 for the second Warrant.

"This transaction significantly lowers our interest rate which will significantly increase our cash flow," said the Company's Chief Executive Officer, Gino Pereira. "It provides stability to our balance sheet and improves our overall financial position, which will help serve as a catalyst for future growth. This is a positive step forward for the Company."

The transaction replaces the Company's existing revolving loan facility. The transaction was financed by SCP, a Canadian private credit firm which provides direct credit financing to public and private middle market companies across Canada and the U.S., financed the transaction.

"We are very pleased to work with NXT-ID management on this refinancing transaction," said Mustafa Humayun of SCP. "We look forward to fostering a long and mutually beneficial relationship with the company and supporting potential future growth needs."