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LendingTree announces up to $175 million first-lien term loan via Apollo funds
By Wendy Van Sickle and William Gullotti
Buffalo, N.Y., March 27 – LendingTree, Inc. secured an up to $175 million first-lien term loan facility from funds managed by Apollo affiliates, according to a news release and an 8-K filing with the Securities and Exchange Commission.
LendingTree intends to draw $125 million of the facility upon funding while the remainder will be available as a delayed-draw for the following 12 months. The facility has a seven-year term.
There is 12 months of call protection, setting prepayments at 101, after which they may be prepaid at par. Prepayments will also be at 101 following a change of control.
Interest will be SOFR plus 575 basis points. There is an included opportunity for a one-time 25 bps step-down after six fiscal quarters from the closing date if the borrower reaches a gross first-lien leverage ratio at or below 3.75 to 1.0.
The funds will be used for general corporate purposes, which may include repayment of existing debt.
“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,” LendingTree chief financial officer Trent Ziegler said in the release. With an improved financial position, we believe the business is well positioned to capitalize on attractive opportunities across the LendingTree ecosystem.”
Charlotte, N.C.-based LendingTree operates an online exchange that connects consumers with multiple lenders, banks and credit partners.
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