Digital Media Solutions, a provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, entered into a new $275 million, five-year senior secured credit facility, which consists of term loans in an aggregate principal amount of $225 million and a $50 million revolving credit facility.
Truist Securities and Fifth Third Bank acted as joint lead arrangers and joint bookrunners for the financing. Truist Bank also serves as the administrative agent, collateral agent, lender and issuing bank.
Proceeds from the term loans were used to repay and terminate the company’s previous $220 million senior secured credit facility, which consisted of term loans in an aggregate principal amount of $205 million and a $15 million revolving credit facility. At closing, the new revolver was undrawn.
In conjunction with the $275 million refinancing transaction, S&P Global Ratings assigned a ‘B’ issuer credit rating and Moody’s Investors Service assigned a ‘B2’ corporate family rating to Digital Media Solutions.
The new credit facility provides increased borrowing capacity, a new five-year tenor and lower amortization, along with greater flexibility. The revolving facility can be used to finance working capital needs, permitted acquisitions and investments, capital expenditures and general corporate purposes.
“This new credit facility, with its increased capacity and extended maturity, is another important step in the financial transformation of Digital Media Solutions,” Joe Marinucci, CEO of Digital Media Solutions, said. “It provides us with increased financial flexibility to support our key growth initiatives.”
The new credit facility is governed by a maximum net leverage covenant of 5x, with a step down to 4.5x over time.
