SurgePays, Inc., a technology and telecommunications company focused on the underbanked and underserved, closed on a $25 million senior secured credit facility from Affordable Connectivity Financing V LLC (“ACF V”) – a wholly-owned subsidiary of Horizon Capital LLC and affiliate of ACP Finance. Approximately $15 million of financing was provided at closing.

The credit facility, an Installment Sale Agreement with ACF V, is a structured credit, non-dilutive structure without warrants, convertibility or stock issued as part of the transaction. An Installment Sale Agreement is a unique short-term liability that provides for repayment over the subscriber life in a fashion that should allow SurgePays to grow its subscriber base in a cash flow positive manner.

Brian Cox, CEO of SurgePays, stated, "Our team has worked many hours for months to accomplish this access to millions in growth capital without incurring term debt or selling stock. If you consider we have throttled sales awaiting this funding and still ramped our revenue up 2.5X to over $36 million in Q3, it’s extremely exciting to think of what our team can do fully locked and loaded. The guys at ACP Finance are a great partner for us as they allow us to lower our device costs and increase sales within a non-dilutive investment structure with no term debt or stock related component. The impact to our cash flow, revenue and balance sheet should be significant. This facility structure is perfectly suited for our hyper growth model because it offers us increased credit capacity as we continue to add subscribers."

Bill Pettinati, Manager of ACF V, stated, "We are pleased to add SurgePays to our portfolio of ACP and Lifeline companies that provide essential broadband and communication services to the underserved. We look forward to a long partnership with Brian and his team in building SurgePays."

Kelley Drye & Warren LLP represented Affordable Connectivity Financing V LLC and Lucosky Brookman LLP represented SurgePays in the transaction.