Edgio obtains $79.47 million four-year term loan from Lynrock Lake

By Marisa Wong

Los Angeles, Nov. 15 – Edgio, Inc. entered into a credit agreement on Nov. 14 that provides a senior secured term loan credit facility with Lynrock Lake Master Fund LP, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for term loans in the aggregate principal amount of $79,472,175.22 at an interest rate of 3.5% cash/16% payment in kind. The term loans mature on Nov. 14, 2027.

The senior secured term loan may be prepaid in full with proceeds from new 3.5% cash/16% PIK senior secured convertible notes due 2027 notes (but only all of both instruments together) starting on the 91st day after settlement of the senior secured term loan and new notes and ending 10 business days after that. The repurchase price for the senior secured term loan will be 106 plus accrued interest. After Nov. 14, 2024, the company may repay a portion of the senior secured term loan at par plus accrued interest plus all future scheduled payments of interest to maturity; however, prior to Nov. 14, 2024, the senior secured term loan may not be voluntarily prepaid except as specified above.

A portion of the loan proceeds is expected to be used to repurchase the remaining outstanding amount of the company’s existing 3.5% convertible senior notes due 2025.

According to the 8-K, Edgio entered into a private exchange with Lynrock, which holds $118.87 million of the existing 3.5% convertibles due 2025. In exchange for the existing 3.5% convertibles due 2025, Edgio issued Lynrock $118.87 million of the new convertibles due 2027.

The credit agreement is secured by a first priority lien on substantially all assets of the company and its domestic subsidiaries and ranks pari passu with the new notes.

In addition, the credit agreement requires the company to comply with some financial covenants, namely a maximum total net leverage ratio, a minimum fixed-charge coverage ratio, a minimum adjusted quick ratio and a minimum qualified cash covenant.

Edgio, formerly Limelight Networks, Inc., provides content delivery services to stream digital content over the internet. The company is based in Phoenix, Ariz.

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