Daily News: July 9, 2013

JPMorgan-Led Bank Group Provides $250MM Revolver to AOL

AOL announced that its board of directors authorized the company to enter into a five-year secured $250 million revolving credit facility with a syndicated bank lending group, led by JPMorgan Chase Bank. The facility is secured by substantially all the assets of AOL and its material domestic subsidiaries, subject to customary exceptions, and was not drawn upon at closing. AOL intends to use borrowings under this facility for general corporate purposes.

In conjunction with the revolver, the board also authorized an additional $150 million share repurchase authorization. Year-to-date, AOL has repurchased 1.4 million shares of common stock at an average price of $35.65, or $50 million in aggregate, bringing AOL’s total current available authorization to $200 million.

“Today’s announcement significantly strengthens AOL’s capital structure and marks another step forward in our financial progress,” said AOL executive vice president and CFO, Karen Dykstra. “The oversubscribed credit facility underscores the debt market’s receptiveness to AOL and significantly improves our financial flexibility to allocate capital to our strategic priorities, as well as continue our track record of returning capital to our shareholders.”

AOL is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain and connect the world.