Direct Digital Holdings, an advertising and marketing technology platform and owner of operating companies Colossus Media, Huddled Masses and Orange142, completed an extension to its existing debt facility.
Direct Digital upsized its existing funded credit facility with Lafayette Square, a commercially-scaled investment platform. The facility now totals $26 million, and the company intends to deploy the additional capital to simplify and solidify its balance sheet and complete the final payment owed to a former owner, USDM Holdings, which will result in a lower blended cost of capital and increased cashflow to the company.
“We are pleased to enhance our financial flexibility utilizing our existing debt agreement with Lafayette Square,” Mark Walker, chairman and CEO of Direct Digital, said. “Lafayette Square has been a committed, collaborative partner and has provided us with access to supportive non-dilutive capital as we continue to grow our business and optimize our capital structure.”
“Lafayette Square is pleased to partner with Direct Digital, fuel its growth and identify ways to support the wellbeing of its employees,” Damien Dwin, founder and CEO of Lafayette Square, said. “We support Direct Digital’s innovative approach to enact meaningful change benefitting historically marginalized communities across the advertising landscape.”
