LendingTree, an online financial services marketplace, closed a $475 million credit facility, consisting of a new $400 million five-year term loan B and a $75 million revolving credit facility. The financing replaces the company’s existing term loan B due 2028 and its loan agreement with Apollo.
“This transaction marks a major milestone in our ongoing efforts to enhance our financial foundation,” Jason Bengel, chief financial officer of LendingTree, said. “The new facility will reduce our interest expense, eliminate several restrictive covenants from prior agreements and reward shareholders with a lower cost of capital that is reflective of our improved growth trajectory. Going forward this new facility enables us to operate with more flexibility, invest in the business and opportunistically repurchase shares.”
Key terms of the facility, led by Bank of America as lead left arranger and bookrunner and Truist Securities as joint lead arranger and bookrunner, include:
- $400 million term loan B and $75 million revolver, both with five-year maturities
- Interest rates of SOFR + 450 bps on the term loan and SOFR + 350 bps on the revolver
- A 25-basis point reduction in interest margin upon achieving a B2 rating with a stable outlook from Moody’s
- Use of proceeds includes refinancing of existing debt and general corporate purposes
- Reduced restrictive covenants, including the removal of minimum cash and AEBITDA requirements associated with the Apollo loan agreement
- Enhanced liquidity and operational flexibility
“This refinancing is a strategic move that strengthens our balance sheet and gives us the flexibility to execute on our long-term vision,” Doug Lebda, chairman and CEO of LendingTree, said. “We’re now in a stronger position to grow the business, pursue new opportunities and drive long-term shareholder value.”
