AudioEye Secures $20 Million Loan Facility for Growth
AudioEye Secures $20 Million Loan Facility
Facility materially reduces interest rate with added flexibility
AudioEye, Inc. (Nasdaq: AEYE), a leader in digital accessibility solutions, has officially announced the acquisition of a new loan facility valued at $20 million. This strategic financial move is led by Bridge Bank, which is a well-regarded division of Western Alliance Bank, a renowned institution with considerable assets amounting to over $80 billion.
Details of the Loan Facility
The recent loan facility consists of a $12 million term loan, a $3 million revolving credit line, and a $5 million delayed draw term loan. This structure not only offers AudioEye significant liquidity options but also provides a much lower interest rate compared to the company's preceding arrangement. Notably, the terms of this new facility will mature five years after the closing date.
Repayment and Financial Health
The initial amount will be utilized to fully repay an existing term loan, enhancing AudioEye's cash position. This transaction is expected to provide more substantial resources for the company’s future strategic initiatives. The new revolver and delayed draw term loan will maintain the same favorable interest rates, allowing the company to seize further growth opportunities as they arise.
Management Insights
Kelly Georgevich, CFO of AudioEye, expressed optimism regarding this new partnership with Bridge Bank, highlighting that their operating leverage has been increasingly recognized over recent quarters. The company anticipates a marked improvement in its adjusted EBITDA, projecting an approximate 42% increase year-over-year based on recently provided guidance. This loan facility is a key enabling factor in fostering flexibility for AudioEye's strategic plans moving forward.
Bridge Bank's Commitment
Francesco Corradino, Director of Technology & Innovation Banking at Bridge Bank, underscored the bank's enthusiasm in partnering with AudioEye. He acknowledged the innovation and commitment AudioEye demonstrates in making the digital landscape inclusive for all users. This loan reflects Bridge Bank's dedication to supporting premier companies like AudioEye that are on the cutting edge of technology and accessibility solutions.
About AudioEye
AudioEye is committed to ensuring that the digital future is accessible for everyone. Renowned for its comprehensive solutions, the company leverages cutting-edge AI technologies combined with insights from the disability community to deliver exceptional accessibility standards. Serving over 127,000 customers, including industry giants, AudioEye is armed with 24 patents in the realm of digital accessibility.
Providing services like 24/7 accessibility monitoring and automated WCAG issue testing, AudioEye empowers businesses to not only achieve compliance but to create holistic, user-friendly digital experiences.
About Bridge Bank
Bridge Bank, a crucial division of Western Alliance Bank, specializes in delivering tailored banking experiences that prioritize client relationships. Established in Silicon Valley in 2001, Bridge Bank has made a name for itself by offering banking solutions uniquely crafted to meet the needs of a diverse array of companies, from startups to publicly traded enterprises. The bank's expertise extends to providing financial services to portfolio companies and small to mid-sized businesses across various sectors.
Frequently Asked Questions
What is the amount of the new loan facility that AudioEye secured?
The new loan facility amounts to $20 million.
Which bank is providing this loan to AudioEye?
The loan is provided by Bridge Bank, which is part of Western Alliance Bank.
How will the new loan facility benefit AudioEye?
The loan facility will reduce interest rates and provide flexibility for strategic opportunities, strengthening AudioEye's cash position.
What does AudioEye focus on?
AudioEye specializes in providing digital accessibility solutions, ensuring that digital experiences are inclusive for all users.
What is the significance of this loan for AudioEye's strategic growth?
This loan is crucial for funding future growth initiatives and enhancing operating leverage for the company.
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