Mizrahi Tefahot Bank provided a $25 million loan facility to Perion Network, a provider of digital marketing solutions to brands focused on their consumer relationships. The facility will benefit Perion’s Israeli subsidiary, ClientConnect.
“Our strategy has been to both take costs out of the business and invest in technology to enable Perion to continue to stay at the leading edge of digital technology,” said Doron Gerstel, CEO of Perion. “It is gratifying that the financial community recognizes our substantial progress.”
The new loan will replace two debt facilities which will now be consolidated into a single debt facility with Bank Mizrahi. The first is the existing debt of ClientConnect with Bank Mizrahi in an amount of approximately $2.5 million and the second is Undertone’s approximately $21 million credit facility with SunTrust Bank.
Principal on the loan is payable in 12 equal quarterly instalments beginning in March 2019. Interest is at the rate of three-month LIBOR, plus 5.7% per annum.
“As this new loan facility refinances two loans, it enables the group to better manage its debt service by extending the maturity date, rescheduling and redistributing principal payments on the loan and improve Perion’s flexibility related to global cash management,” said Maoz Sigron, Perion’s chief financial officer.
The credit facility is scheduled to mature on December 31, 2021.
