Sell-side advertising company Magnite closed $540 million of new senior secured credit facilities, including a $365 million senior secured term loan facility and a $175 million senior secured revolving credit facility. According to an 8K filed with the SEC, Morgan Stanley Senior Funding is administrative for the term loan and Citibank is administrative and collateral agent for the revolver.

The new term loan matures in February 2031with no springing maturity relating to the company’s convertible notes due in March 2026. The new revolver matures in February 2029.

Magnite used proceeds from the new credit facilities to execute its plan to fully refinance the company’s existing senior secured $360 million term loan facility and $65 million revolving credit facility, and to pay fees and expenses associated with the transaction. As of Dec. 31, 2023, the outstanding principal amount of the existing term loan facility was $351 million, and the Company had $0 of outstanding borrowings under the existing revolving credit facility.

The new term loan bears interest at term SOFR plus 4.5% (compared to adjusted term SOFR plus 5% under the previous term loan) and was issued with a 99% original issue discount. Loans under the new revolver will bear interest at term SOFR plus a margin ranging from 3.5% to 4% (compared to 4.25% to 4.75% under the previous revolver.

In addition, the company’s board of directors approved a new $125 million common stock and convertible note repurchase program.