Taboola's Strategic Debt Refinancing Boosts Financial Stability
Taboola Completes Debt Refinancing to Enhance Financial Position
NEW YORK — Recently, Taboola (NASDAQ: TBLA), recognized as a global leader in performance-based advertising, successfully executed a refinancing deal involving a $270 million revolving credit facility. This strategic move has enabled the company to pay off the remaining $123.2 million from its prior term loan. The refinancing is expected to yield annual interest savings estimated between $3 to $5 million.
Advantages of the New Revolving Credit Facility
Taboola's new credit facility offers several key benefits that contribute significantly to its financial flexibility:
Improved Financial Flexibility
With this new arrangement, Taboola can maintain a lower average debt balance, which illustrates an efficient approach towards managing company funds and maximizes potential interest savings.
Extended Debt Maturities
The company has successfully extended its debt maturities to 2030. This not only mitigates short-term financial pressures but also provides a stable foundation for future growth initiatives.
Increased Debt Capacity
Furthermore, the credit facility offers an additional $180 million in debt capacity. This enhancement enables Taboola to navigate through various financial landscapes with greater assurance and adaptability.
Statements from Leadership
Steve Walker, CFO of Taboola, expressed optimism regarding the refinancing, stating, “We are pleased to announce this significant refinancing transaction, which reduces our cost of capital and strengthens our liquidity. It extends our debt maturities to 2030.” He highlighted how this move empowers Taboola's financial position, allowing the company to continue investing in profitable growth while upholding its ambitious share buyback program.
About Taboola
Taboola is dedicated to empowering brands and businesses to achieve their growth goals through innovative performance advertising technology. Unlike traditional search and social strategies, Taboola's solutions provide measurable outcomes at scale. It collaborates with thousands of advertisers, connecting them to around 600 million daily active users via its advanced ad platform, Realize.
Partnering with Renowned Publishers
Industry leaders, including NBC News and Yahoo, leverage Taboola's technology to expand audience reach and revenue. OEMs like Samsung and Xiaomi also utilize these capabilities, showcasing Taboola’s extensive data insights, specialized algorithms, and unmatched scale.
Frequently Asked Questions
What is the purpose of Taboola's recent refinancing?
Taboola’s refinancing aims to strengthen its financial position, reduce interest expenses, and extend debt maturities, thereby enhancing liquidity.
How much was the new revolving credit facility?
The new revolving credit facility amounts to $270 million.
What are the expected annual interest savings from the refinancing?
Taboola estimates annual interest savings to be approximately $3 to $5 million based on prevailing rates.
Which banks were involved in this refinancing deal?
Bank of America, N.A. acted as the Administrative Agent while Citibank, N.A., London Branch, and Valley National Bank served as Syndication Agents.
What is Taboola's primary business focus?
Taboola specializes in performance advertising technology that delivers measurable outcomes for advertisers on a large scale.
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