LendingTree Closes $475 Million Credit Facility, Enhancing Financial Foundation and Strategic Flexibility

LendingTree has closed a $475 million credit facility, replacing its existing Term Loan B due 2028 and loan agreement with Apollo. The financing reduces interest expense, eliminates cumbersome covenants, and increases operating flexibility. The facility includes a $400 million five-year Term Loan B and a $75 million revolving credit facility, with interest rates of SOFR + 450 bps and SOFR + 350 bps, respectively. LendingTree expects to use the proceeds for refinancing existing debt and general corporate purposes.

LendingTree (NASDAQ: TREE), a leading online financial services marketplace, has successfully closed a $475 million credit facility. This new financing, led by Bank of America and Truist Securities, replaces the company's existing Term Loan B due 2028 and Apollo loan agreement. The facility comprises a $400 million five-year Term Loan B and a $75 million revolving credit facility [1].

The key terms of the new facility include interest rates of SOFR + 450 bps on the term loan and SOFR + 350 bps on the revolver. There is also a potential 25-basis point reduction upon achieving a B2 rating from Moody's [1]. This refinancing significantly reduces interest expense and removes restrictive covenants, including minimum cash and AEBITDA requirements, thereby restoring LendingTree's ability to repurchase shares and make strategic investments [1].

The new credit facility enhances LendingTree's financial flexibility and operational latitude. The refinancing indicates growing lender confidence in the company's financial trajectory, as it aligns with management's focus on strengthening the financial foundation while positioning for future growth opportunities [1].

In addition to the financial benefits, the removal of restrictive covenants allows LendingTree to operate more efficiently and make strategic investments. This strategic move strengthens the company's balance sheet and enables it to pursue new opportunities and drive long-term shareholder value [2].

References:

[1] https://www.stocktitan.net/news/TREE/lendingtree-announces-closing-of-475-million-credit-8w54j673lthm.html
[2] https://www.prnewswire.com/news-releases/lendingtree-announces-closing-of-475-million-credit-facility-302536190.html