Business
Magnite Announces Closing of New Senior Secured Revolving Credit and Term Loan Facilities
Approves New $125 million Repurchase Plan NEW YORK, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the world's largest independent sell-side
About this update from Magnite, Inc.
[{"type":"text","content":"Approves New $125 million Repurchase Plan\nNEW YORK, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the world's largest independent sell-side advertising company, today announced the closing of $540.0 million of new senior secured credit facilities (the “New Credit Facilities”). In addition, the company announced that its Board of Directors approved a new $125.0 million common stock and convertible note repurchase program. The New Credit Facilities include a $365.0 million senior secured term loan facility that matures in February 2031 (the “New Term Loan Facility”), with no springing maturity relating to the Company’s Convertible Notes due March 2026, as well as a $175.0 million senior secured revolving credit facility that matures in February 2029 (the “New Revolving Credit Facility”). Proceeds from the new credit facilities were used to fully refinance the Company’s existing senior secured $360.0 million term loan facility and $65.0 million revolving credit facility, and to pay fees and expenses associated with the transaction. As of December 31, 2023, the outstanding principal amount of the existing term loan facility was $351.0 million, and the Company had $0 of outstanding borrowings under the existing revolving credit facility. The New Term Loan Facility bears interest at Term SOFR + 4.5% (compared to Adjusted Term SOFR + 5.0% under the existing term loan facility) and was issued with a 99.0% original issue discount. Loans under the New Revolving Credit Facility will bear interest at Term SOFR plus a margin ranging from 3.5% - 4.0% (compared to 4.25% - 4.75% under the existing revolving credit facility). In addition, the Company’s Board of Directors approved a repurchase program, under which the company is authorized to purchase up to $125.0 million of its common stock and convertible notes through February 1, 2026. The repurchase program allows the company to repurchase its common stock or convertible notes using open market stock purchases, privately negotiated transactions, block trades or other means in accordance with U.S. securities laws. The number of securities repurchased, if any, and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with working capital requirements, general business conditions, other...