LifeVantage Announces $67MM Credit Facility with TCW Fund
LifeVantage reported that in connection with its recently announced Dutch auction tender offer for common share purchases, it entered into a financing agreement on October 18, 2013, with a fund managed by TCW Special Situations.
The financing agreement provides for a senior secured credit facility in an aggregate principal amount of $67 million, of which approximately $47 million will be funded at close and $20 million will be available post-close for general corporate purposes. The term loan is a five-year loan maturing on October 18, 2018, and the principal amount is repayable in consecutive quarterly installments beginning with the calendar quarter ending March 31, 2014.
Douglas C. Robinson, president and chief executive officer of LifeVantage, stated, “The successful closing of our credit facility provides long-term financing that complements our capital structure and illustrates the strength of our operating metrics including free cash flow. This facility will fund our recently announced modified Dutch tender offer which will enable us to reduce the number of shares outstanding and we believe improve long-term shareholder value.”
On September 24, 2013, LifeVantage filed its tender offer statement in connection with the company’s offer to purchase for cash up to $40 million of shares of its common stock.
Headquartered in Salt Lake City, LifeVantage seeks to transform wellness and anti-aging with products that reduce oxidative stress at the cellular level.