LENDINGTREE ANNOUNCES CLOSING OF $475 MILLION CREDIT FACILITY
Rhea-AI Summary
LendingTree (NASDAQ: TREE), the leading online financial services marketplace, has secured a new $475 million credit facility, comprising a $400 million five-year Term Loan B and a $75 million revolving credit facility.
The new financing, led by Bank of America and Truist Securities, replaces the company's existing Term Loan B due 2028 and Apollo loan agreement. Key terms include interest rates of SOFR + 450 bps on the term loan and SOFR + 350 bps on the revolver, with a potential 25-basis point reduction upon achieving a B2 rating from Moody's.
The refinancing significantly reduces interest expense, removes restrictive covenants including minimum cash and AEBITDA requirements, and restores the company's ability to repurchase shares and make strategic investments.
Positive
- Reduced interest expense and lower cost of capital
- Removal of restrictive covenants including minimum cash requirements
- Restored ability to repurchase shares and make strategic investments
- Enhanced liquidity through $75M revolving credit facility
- Potential for further 25bps interest rate reduction with B2 Moody's rating
Negative
- Substantial debt load of $475M remains on balance sheet
- Interest rates still relatively high at SOFR + 450bps for term loan
News Market Reaction 10 Alerts
On the day this news was published, TREE gained 10.02%, reflecting a significant positive market reaction. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $86M to the company's valuation, bringing the market cap to $949M at that time.
Data tracked by StockTitan Argus on the day of publication.
New Financing Reduces Interest Expense, Removes Cumbersome Covenants, and Increases Operating Flexibility
"This transaction marks a major milestone in our ongoing efforts to enhance our financial foundation," said Jason Bengel, Chief Financial Officer of LendingTree. "The new facility will reduce our interest expense, eliminate several restrictive covenants from prior agreements, and reward shareholders with a lower cost of capital that is reflective of our improved growth trajectory. Going forward this new facility enables us to operate with more flexibility, invest in the business, and opportunistically repurchase shares."
The facility, led by Bank of America as lead left arranger and bookrunner and Truist Securities as joint lead arranger and bookrunner, provides LendingTree with a simplified and more cost-efficient debt profile. Key terms include:
$400 million $75 million - Interest rates of SOFR + 450 bps on the term loan and SOFR + 350 bps on the revolver
- The facility includes a 25-basis point reduction in interest margin upon achieving a B2 rating with a stable outlook from Moody's
- Use of proceeds includes refinancing of existing debt and general corporate purposes
- Reduced restrictive covenants, including the removal of minimum cash and AEBITDA requirements associated with the Apollo loan agreement, and we regain the ability to repurchase shares and make strategic investments
- The revolving credit facility enhances liquidity and operational flexibility
"This refinancing is a strategic move that strengthens our balance sheet and gives us the flexibility to execute on our long-term vision," said Doug Lebda, Chairman and CEO of LendingTree. "We're now in a stronger position to grow the business, pursue new opportunities, and drive long-term shareholder value."
Additional details on the transaction can be found in the Company's Form 8-K filed with the Securities and Exchange Commission on August 21, 2025.
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
About LendingTree
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 430 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.
Contact
press@lendingtree.com
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SOURCE LendingTree, Inc.
FAQ
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