Synchronoss Technologies Receives $30mln IRS Refund, Pays Down 75% of Term Loan

Synchronoss Technologies received a significant IRS refund of $30 million, including $5.3 million in interest, under the CARES Act. The company had originally filed for $46 million in tax refunds in 2020 and received an initial $18 million. After a lengthy audit process, the remaining amount was paid, allowing the company to pay down 75% of its term loan. This is a positive development for the company, enabling it to strengthen its financial position.

Synchronoss Technologies, Inc. (SNCR) recently received a significant IRS refund of $30.2 million, including $5.3 million in interest, under the CARES Act. This development marks a positive milestone for the company, enabling it to strengthen its financial position.

The company initially filed for $46 million in tax refunds in 2020 and received an initial $18 million. After a lengthy audit process, the remaining amount of $30.2 million was paid. Seventy-five percent of the total proceeds from the refund, totaling approximately $25.4 million, will be used to pay down a portion of the $200 million term loan facility at par pursuant to the terms of the Credit Agreement [1]. This action will result in an annual interest savings of approximately $2.9 million at the current interest rate.

Following the payments, SNCR will have a total debt of $173.4 million, cash of approximately $30 million, and net debt of approximately $143 million. The company has reduced its total debt by over $100 million over the course of the last four years. Additionally, SNCR expects to be eligible for a one-time 50-basis point interest rate step down on the first anniversary of the term loan pursuant to the terms of the Credit Agreement based on the improved debt leverage ratio [1].

180 Degree Capital Corp. (NASDAQ: TURN), which owns approximately 890,000 shares of SNCR directly, welcomed the news. Kevin Rendino, the Chief Executive Officer of 180 Degree Capital, who is also a member of SNCR’s board of directors, expressed excitement about the positive development. He stated, "We would like to congratulate the management team of SNCR, and in particular the finance team led by its CFO, Lou Ferraro, for this positive announcement. The receipt of this long-expected cash materially strengthens SNCR’s balance sheet and reduces interest payments that allow for direct accretion of value to common stockholders. We could not be more excited about the future path and opportunities for SNCR, and once again congratulate management on this milestone" [1].

Daniel Wolfe, President of 180 Degree Capital, noted that the third quarter of 2025 has been positive with regard to their portfolio holdings. Their total gross performance of approximately +22.8% and estimated growth in net asset value per share (“NAV”) of approximately +10% year-to-date in 2025 continues to significantly outperform the Russell Microcap Index total return of +4.8% [1].

The receipt of the IRS refund is a significant development for SNCR, as it strengthens the company's financial position and reduces its debt burden. This positive news is likely to be welcomed by investors and financial professionals alike.

References:
[1] https://finance.yahoo.com/news/180-degree-capital-corp-notes-120000548.html