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Air America Radio are not the only ones seeking cash. AAR's revenue short-falls have reportedly sent them to their backers at least twice. Now the company that AAR hired to provide traffic for their one operated station is going to the bank.
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Traffic.com is a self-described "technology company" whose main business is providing highway sensors to government transportation departments. They also create graphics software and computer-generated maps for TV traffic reports. In addition, they provide traffic reports and data to some radio broadcasters, including Air America Radio, but trail far behind Metro Network's Shadow Traffic and Clear Channel's Total Traffic. The company has resorted to various cost-cutting measures including centralizing some of its traffic reporting functions for different cities in suburban Philadelphia.
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Traffic.com Arranges $12M Loan Deal
An SEC 8-K filing by TRAFFIC.COM says that the traffic service has entered a $12 million loan agreement with SQUARE 1 BANK. The agreement is for two years ending AUGUST 27, 2008 and can be terminated by TRAFFIC.COM on 30 days' notice; the rate is prime plus 0.5%, and the bank is taking warrants for over 26,000 shares of the company at $4.60/share exercisable through 2013.
Traffic.com is a self-described "technology company" whose main business is providing highway sensors to government transportation departments. They also create graphics software and computer-generated maps for TV traffic reports. In addition, they provide traffic reports and data to some radio broadcasters, including Air America Radio, but trail far behind Metro Network's Shadow Traffic and Clear Channel's Total Traffic. The company has resorted to various cost-cutting measures including centralizing some of its traffic reporting functions for different cities in suburban Philadelphia.