Avid, a technology provider that powers the media and entertainment industry, entered into an amended secured credit facility with JPMorgan Chase Bank and a syndicate of banks, including $186.7 million in senior secured term loans and a $120 million unfunded revolving line of credit. The new facility increases the revolving credit facility from $70 million to $120 million and adds a $20 million incremental term loan (of which $19 million was used to pay off the existing revolving credit facility draw) to the existing $166.7 million term loan. The new facility, which replaces Avid’s existing secured credit facility, includes more favorable terms and does not result in any changes to financial covenants, pricing or the February 2027 maturity.
“Given the strength of Avid’s business and improving financial profile, Avid received strong support from its bank group to term out the existing revolver borrowings into a new term loan and increase the undrawn revolver availability on more favorable terms,” Ken Gayron, executive vice president and CFO, said. “Although our total outstanding debt has not changed materially as of the completion of the transaction, the additional undrawn revolver availability provides Avid more financial flexibility to execute our growth plans and execute our capital deployment strategy as we work to enhance returns for Avid shareholders.”
JPMorgan Chase Bank, Citizens Bank, PNC Capital Markets, Silicon Valley Bank and Truist Securities served as the joint bookrunners and joint lead arrangers for the new credit facility with JPMorgan Chase Bank serving as administrative agent, and Citizens Bank, PNC Bank, Silicon Valley Bank and Truist Bank serving as co-syndication agents.
