The new facility, which matures in August 2018, replaces the Company’s existing $105 million revolving credit facility that was due to expire in August 2016.
The new credit facility has an accordion feature under which it can increase to a maximum of $250 million, subject to certain conditions.
Shares of Demand Media, Inc were down almost 5% to close at $6.16
Chief Financial Offer Mel Tang is quoted in the press release as saying:
“This new credit facility, which was upsized during the syndication process, provides Demand Media with significant additional flexibility and liquidity to pursue our strategic objectives, including the previously announced spin-off of our domain services businesses,” said . “We appreciate the significant support we have received from our existing lenders, and look forward to working with the other new banks in our syndicate.”
“Silicon Valley Bank and U.S. Bank National Association acted as Joint Book Managers and Joint Lead Arrangers, with Silicon Valley Bank as Administrative Agent and U.S. Bank National Association as Syndication Agent; Fifth Third Bank as Documentation Agent; Comerica Bank, Citibank N.A., Union Bank N.A., OneWest Bank FSB, and Goldman Sachs Bank USA as participants.”