Sabio, a California-based ad-tech company that specializes in delivering highly targeted ads, insights and services in ad-supported streaming, closed a new credit facility pursuant to the terms of a credit agreement between its U.S. operating subsidiaries and SLR Digital Finance (SLRDF).
The facility replaces the company’s existing credit facility with Avidbank and provides for a $10 million senior-secured revolving credit facility at an interest rate of the greater of: (i) prime rate plus 2.15% or (ii) 8.5%. The facility has a three-year term and is secured against all of the assets of the company. Advances made under the facility will be available up to an amount equal to: (a) 85% of eligible accounts receivable of Sabio, AppScience and FWD Tech, the company’s U.S. subsidiaries; plus (b) the lesser of (i) 70% of the aggregate outstanding amount of eligible unbilled receivables or (ii) $3 million.
“We are pleased to partner with the team at SLR Digital Finance. As a former lender to Sabio under an earlier iteration, SLR has a deep understanding of our business and the broader digital media landscape,” Sajid Premji, chief financial officer of Sabio, said. “We believe the new facility will provide Sabio with greater balance sheet flexibility at a competitive cost of capital. It will also fortify our balance sheet through several advantages over our previous arrangement, which includes increased liquidity and long-term stability through a multi-year term.”
“Sabio has been the leader in ad-supported streaming television for many years, and we’re thrilled to be partnering with them again,” Randy Mitzman, managing director at SLRDF, said. “Our flexible structure will allow them to be well positioned for future growth in a very competitive market.”
