LENDINGTREE ANNOUNCES $175 MILLION FINANCING FROM APOLLO FUNDS

Rhea-AI Summary

LendingTree secures $175 million financing from Apollo Funds to strengthen its financial position and support growth.

Positive

• LendingTree secures up to $175 million in financing from Apollo affiliates.
• The financing is in the form of a first lien term loan facility.
• LendingTree intends to draw $125 million initially, with the remainder available as a delayed draw.
• Funds will be used for general corporate purposes, including debt repayment.
• The CFO sees this financing as a critical step in the growth trajectory of the business.
• Apollo Funds' support aims to enhance LendingTree's financial flexibility in the current market environment.

Negative

• None.

Financial Analyst

LendingTree's announcement of securing a significant term loan facility indicates a strategic move to strengthen its financial standing. The infusion of capital through debt financing is a common practice, especially for businesses aiming to leverage opportunities without diluting shareholder equity. The immediate drawdown of $125 million suggests immediate liquidity needs or strategic financial obligations, such as debt repayment or investment in growth initiatives. The availability of additional funds with a delayed draw option provides a cushion for unforeseen expenditures or investment opportunities that may arise.

However, securing debt also implies an increase in the company's leverage. Stakeholders should monitor the company's debt-to-equity ratio and interest coverage ratios post-funding to assess the impact on financial health. Moreover, the terms of the loan, including interest rates and covenants, are important in evaluating the cost of capital and the company's flexibility in managing its finances. If the loan terms are favorable, it could signal confidence from the lender in LendingTree's business model and future prospects.

Market Research Analyst

The partnership with Apollo Funds is a testament to LendingTree's potential in the online financial services marketplace. The company's focus on streamlining operations and innovating for customers and partners is pivotal in maintaining a competitive edge. The financial flexibility gained from this loan could enable LendingTree to invest in technology, expand service offerings, or enter new markets, which could drive user growth and enhance revenue streams.

However, it's important to consider the broader market context. The financial services sector is subject to regulatory changes, economic cycles and competitive pressures. LendingTree's ability to navigate these factors, along with effectively deploying the secured funds, will be critical in determining the long-term impact of this financial move on its market position and stock performance.

Economist

In the current economic climate, where interest rates and market conditions are volatile, LendingTree's decision to secure financing could be seen as a preemptive measure to mitigate risks associated with a tightening credit market. The company's proactive approach to fortify its balance sheet may provide a buffer against potential downturns or credit squeezes. Additionally, the move can be interpreted as a signal of LendingTree's expectations for economic conditions and its confidence in its business model.

Access to capital at this juncture allows for strategic flexibility and could be beneficial if the economy faces headwinds, as it ensures that LendingTree can maintain operations and seize growth opportunities without the pressure of immediate financial constraints. This could be particularly advantageous if competitors are less prepared for a challenging economic environment.

CHARLOTTE, N.C., March 27, 2024 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE) ("LendingTree" or the "Company"), operator of LendingTree.com, the nation's leading online financial services marketplace, today announced that it has secured up to $175 million in financing in the form of a first lien term loan facility (the "facility") from funds managed by Apollo affiliates (the "Apollo Funds").

LendingTree intends to draw $125 million of the facility upon funding while the remainder will be available as a delayed draw during the following 12 months. The funds will be used for general corporate purposes, which may include repayment of existing debt.

LendingTree CFO Trent Ziegler said, "This financing with Apollo Funds represents a critical step in the growth trajectory of our business as we build on the significant progress to-date in streamlining our company and fortifying our balance sheet while we continue to innovate on behalf of our customers and partners. With an improved financial position, we believe the business is well positioned to capitalize on attractive opportunities across the LendingTree ecosystem."

Apollo Partner Robert Givone said, "We are pleased to support LendingTree with this customized financing solution to enhance the Company's financial flexibility and better position it to navigate the current market environment."

About LendingTree, Inc.
LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree").

LendingTree is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 500 financial partners. Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.

LendingTree, Inc. is headquartered in Charlotte, NC.

LendingTree Cautionary Note Regarding Forward-Looking Statements

The matters contained in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team, and there can be no assurance that LendingTree will achieve its objectives. For further discussion of risks and uncertainties relevant to LendingTree's business, please see LendingTree's most recent Form 10-K filed with the U.S. Securities and Exchange Commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

Investor Relations:                                                   
investors@lendingtree.com                                                                        

Media Relations:                                                      
press@lendingtree.com

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SOURCE LendingTree, Inc.

How much financing did LendingTree secure from Apollo Funds?

LendingTree secured up to $175 million in financing from Apollo affiliates.

What form does the financing take?

The financing is in the form of a first lien term loan facility.

What will the funds be used for?

The funds will be used for general corporate purposes, which may include debt repayment.

Who sees this financing as a critical step in the growth trajectory of the business?

LendingTree CFO Trent Ziegler sees this financing as a critical step in the growth trajectory of the business.

What is the aim of Apollo Funds' support?

Apollo Funds' support aims to enhance LendingTree's financial flexibility in the current market environment.