The Situation

MQ Software had a need for growth capital to support its expanding market share, but it had not achieved consistent profitability.  Due to performance issues, management had not considered a debt solution, but an infusion of new equity would result in substantial dilution.

The Transaction

Identifying the value of MQ’s recurring maintenance revenue stream, Teneca marketed the opportunity to a select group of technology lenders. We accomplished a $10 million senior debt solution with no equity conversion features, supported by revenues from long-term customer contracts.

The Result

With the growth capital it needed to move forward, MQ Software was positioned to expand its sales and marketing efforts, grow distribution channels and capitalize on growth opportunities within the enterprise software space.