Sell-side advertising company Magnite intends to refinance its outstanding senior secured credit facilities by replacing its existing facilities, consisting of a $360 million term loan facility and a $65 million revolving credit facility, with a new senior secured term loan facility with an expected seven-year maturity (with no springing maturity relating to the company’s convertible notes due March 2026) and a new senior secured revolving credit facility with an expected five-year maturity. The company expects to obtain a new term loan similar in size to the original term loan facility and to increase the size of the revolving credit facility.
Magnite will use the net proceeds of the new credit facilities to repay the existing credit facilities in full and for fees and expenses in connection therewith, and for general corporate purposes and working capital of the company and its subsidiaries.
As of Dec. 31, 2023, the outstanding principal amount of the existing term loan B facility was $351 million and the company had no outstanding borrowings under its existing revolving credit facility. The consummation of the refinancing and the entry into the new credit facilities will be subject to market and other conditions and there can be no assurances that the proposed refinancing will be completed.
During Q4/23, Magnite repurchased $70 million of the convertible notes for an aggregate purchase price of $60.7 million pursuant to its previously announced $100 million repurchase plan. As of Dec. 31, 2023, the company’s principal amount of convertible notes outstanding was approximately $205.1 million.
