Quotient Technology, a digital media and promotions technology company, entered into a commitment letter with PNC Bank, pursuant to which PNC, subject to terms and conditions stated in the letter, has committed to provide the company with a senior secured asset-based revolving credit facility in an initial aggregate principal amount of $50 million. Quotient has also entered into a commitment letter with Blue Torch Capital, under which Blue Torch, subject to terms and conditions stated in the letter, has committed to provide Quotient with a senior secured term loan facility in an aggregate principal amount up to $55 million.
The company’s new capital structure will be used to retire the maturing convertible note obligations and to fund capital expenditures to strengthen and grow the business.
“We are very pleased to secure this non-dilutive debt financing, which significantly improves our capital structure and aligns our cash position with our growth strategy and the demands as a technology platform,” Matt Krepsik, CEO of Quotient, said. “As a more stable and durable business, Quotient is better positioned to capitalize on an evolving industry landscape and enhance long-term shareholder value.”
Quotient notes that it has no other outstanding long-term debt. The agreed-upon financing does not include any equity or equity-linked component and is therefore non-dilutive to shareholders.