Nexxen Announces Transition to Reduced $50 Million Revolving Credit Facility

Rhea-AI Summary

Nexxen International (NASDAQ: NEXN) has successfully amended its revolving credit facility, reducing the committed facility size from $90 million to $50 million while extending the maturity to September 2027. The company, which specializes in advertising technology with focus on data and advanced TV, maintains that its strong cash position combined with the updated facility provides sufficient liquidity for ongoing operations and future strategic investments. Nexxen's technology stack includes a demand-side platform (DSP), supply-side platform (SSP), and the Nexxen Data Platform, offering capabilities in streaming media, planning, activation, monetization, measurement, and optimization.

Positive

• Extension of credit facility maturity to September 2027 provides longer-term financial flexibility
• Company reports strong cash position indicating financial stability
• Maintained access to credit facility for strategic investments and business operations

Negative

• Reduction in credit facility size from $90 million to $50 million, representing a 44% decrease in available credit

Insights

Financial Analyst

Nexxen's credit facility reduction suggests strong cash position but may limit future borrowing flexibility while extending maturity provides stability.

Nexxen has amended its revolving credit facility, reducing the size from $90 million to $50 million while extending the maturity to September 2027. This reduction of 44% in available credit might initially appear concerning, but the context suggests this is a strategic financial decision rather than one forced by lenders.

The company explicitly states it maintains a "strong cash position" which, combined with the reduced facility, still provides "ample liquidity" for both operational needs and strategic initiatives. This indicates Nexxen is likely sitting on sufficient cash reserves, making a larger credit line unnecessary and potentially cost-inefficient.

From a financial structure perspective, this move suggests management is optimizing its balance sheet by reducing unused credit capacity that likely carries commitment fees, while simultaneously securing longer-term access to capital by extending the maturity date. The extension to 2027 provides over two years of additional financial runway and stability.

However, the 44% reduction does decrease financial flexibility somewhat, potentially limiting Nexxen's ability to quickly execute larger acquisitions or investments without securing additional financing. This could indicate either conservative financial management or a strategic shift away from large-scale M&A activities in the near term.

For an adtech company operating in a rapidly evolving industry with frequent consolidation, maintaining appropriate liquidity while efficiently managing capital costs represents a delicate balancing act that Nexxen appears to be navigating deliberately.

NEW YORK, May 30, 2025 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) (“Nexxen” or the “Company”), a global, flexible advertising technology platform with deep expertise in data and advanced TV, today announced that it has successfully completed an amendment to its existing revolving credit facility.

Nexxen amended the revolving credit facility to, among other things, reduce the committed facility size from $90 million to $50 million and extend the maturity to September 2027. Nexxen’s strong cash position, combined with the updated facility, provides ample liquidity to support ongoing business needs as well as future strategic investments and initiatives.

About Nexxen

Nexxen empowers advertisers, agencies, publishers and broadcasters around the world to utilize data and advanced TV in the ways that are most meaningful to them. Our flexible and unified technology stack comprises a demand-side platform (“DSP”) and supply-side platform (“SSP”), with the Nexxen Data Platform at its core. With streaming in our DNA, Nexxen’s robust capabilities span discovery, planning, activation, monetization, measurement and optimization – available individually or in combination – all designed to enable our partners to achieve their goals, no matter how far-reaching or hyper niche they may be.

Nexxen is headquartered in Israel and maintains offices throughout the United States, Canada, Europe and Asia-Pacific, and is traded on Nasdaq (NEXN). For more information, visit www.nexxen.com.

For further information please contact:

Nexxen International Ltd.
Billy Eckert, Vice President of Investor Relations
ir@nexxen.com

Caroline Smith, Vice President of Communications
csmith@nexxen.com

Forward Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the anticipated benefits of Nexxen’s amended credit facility and Nexxen’s future access to ample liquidity to support ongoing business needs as well as future strategic investments and initiatives. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 5, 2025. Any forward-looking statements made by Nexxen in this press release speak only as of the date of this press release, and Nexxen does not intend to update these forward-looking statements after the date of this press release, except as required by law.

Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership.

FAQ

What changes did Nexxen (NEXN) make to its revolving credit facility in May 2025?

Nexxen reduced its revolving credit facility from $90 million to $50 million and extended the maturity date to September 2027.

How much did Nexxen (NEXN) reduce its credit facility by?

Nexxen reduced its credit facility by $40 million, from $90 million to $50 million, representing a 44% decrease.

When does Nexxen's (NEXN) new credit facility mature?

Nexxen's amended credit facility matures in September 2027.

What is the purpose of Nexxen's (NEXN) revolving credit facility?

The credit facility provides liquidity to support Nexxen's ongoing business needs and future strategic investments and initiatives.

What services does Nexxen (NEXN) provide?

Nexxen provides advertising technology solutions including a demand-side platform, supply-side platform, and data platform, specializing in streaming media, planning, activation, monetization, and measurement.