Harte Hanks To Sell 3Q Digital; Secures $20 Mln Credit Facility - Quick Facts

(RTTNews) - Harte Hanks Inc. (HHS), a multi-channel marketing company, announced initiatives to enhance its strategic position and increase its financial flexibility.

As Harte Hanks builds out its partnership model, it has determined that it can leverage a partner model for digital marketing services as part of a client's data driven omni-channel marketing strategy. The company plans to sell its 3Q Digital subsidiary.

Harte Hanks has also secured a two-year $20 million credit facility from Texas Capital Bank. The company intends to use the credit facility for working capital and general corporate purposes.

The credit facility is being guaranteed by certain members of the Shelton family, descendants of one of the company's founders, who in aggregate own approximately five percent of the company's stock.

In addition, Harte Hanks has identified $10 million of annualized corporate and operational costs it will take out of the business to increase focus, simplify operations and provide additional liquidity.

Robert Munden, CFO and General Counsel said, "The added liquidity provided by the combination of the 3Q sale, the credit facility and cost reductions will give Harte Hanks the financial flexibility we need to make the strategic investments to accelerate our transition. These initiatives along with our recently announced Wipro, Opera Solutions and Usermind partnerships, position Harte Hanks as a leader in the marketing services and MarTech market."