Magnite Successfully Completes Term Loan Repricing

Rhea-AI Summary

Magnite (NASDAQ: MGNI), the world's largest independent sell-side advertising company, has successfully repriced its $364 million senior secured term loan facility. The repricing reduces the interest rate by 75 basis points to Term SOFR + 3.75% from the previous rate of Term SOFR + 4.5%. This represents a cumulative reduction of 125 basis points compared to the rate prior to the February refinancing. The Term Loan's maturity remains unchanged at February 2031, and all other terms are substantially the same. This repricing is expected to result in over $2.7 million in yearly interest payment savings for Magnite. The company's convertible notes due March 2026 and undrawn revolving credit facility maturing in February 2029 are unaffected by this repricing.

Positive

• Interest rate reduced by 75 basis points, resulting in over $2.7 million annual interest payment savings
• Cumulative interest rate reduction of 125 basis points since February refinancing
• No changes to loan maturity or other substantial terms

Negative

• None.

Reduces Interest Rate by 75 Basis Points, Over $2.7 Million in Yearly Interest Payment Savings

NEW YORK, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the world's largest independent sell-side advertising company, today announced the successful repricing of the outstanding loans under its senior secured term loan facility (Term Loan) due in February 2031.

The $364 million repricing reduces the interest rate by 75 basis points to Term SOFR + 3.75% from the previous rate of Term SOFR + 4.5%. The interest rate improvement represents a cumulative reduction of 125 basis points compared to the rate prior to the refinancing of the Term Loan in February. There are no changes to the maturity of the Term Loan following this repricing, and all other terms are substantially unchanged. In addition, the repricing has no impact on the company’s convertible notes, due March 2026, or its revolving credit facility (undrawn), which matures in February 2029.    

About Magnite

We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world's leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Forward-Looking Statements:

This press release includes forward-looking statements, including with respect to our repricing plans. Investors should not place undue reliance on these forward-looking statements. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates,” “proposed” or other comparable terms. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including, without limitation, the risks and uncertainties discussed in the “Risk Factors” section in the company’s reports filed with the U.S. Securities and Exchange Commission. Investors should read this press release and the documents that we have filed or will file with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. The Company assumes no obligation to update the information contained herein, which speaks only as of the date hereof.

Investor Relations Contact
Nick Kormeluk
(949) 500-0003
nkormeluk@magnite.com

FAQ

What is the new interest rate for Magnite's (MGNI) term loan after the September 2024 repricing?

After the September 2024 repricing, Magnite's term loan interest rate is Term SOFR + 3.75%, reduced from the previous rate of Term SOFR + 4.5%.

How much will Magnite (MGNI) save annually from the September 2024 term loan repricing?

Magnite is expected to save over $2.7 million annually in interest payments as a result of the September 2024 term loan repricing.

When does Magnite's (MGNI) repriced term loan mature?

Magnite's repriced term loan maintains its original maturity date of February 2031.

How does the September 2024 repricing affect Magnite's (MGNI) convertible notes and revolving credit facility?

The September 2024 repricing has no impact on Magnite's convertible notes due March 2026 or its undrawn revolving credit facility maturing in February 2029.