Blucora Announces Closing of New Credit Facility
May 23 2017 - 8:16AM
Blucora, Inc. (NASDAQ:BCOR), a leading provider of
technology-enabled financial solutions to consumers, small
businesses and tax professionals, today announced that it has
closed a new credit facility that includes significantly improved
terms and extended maturity dates relative to its previous term
loan facility.
The new $425 million credit facility consists of
a $375 million senior secured term loan and a $50 million revolving
credit facility that will mature in 2024 and 2022, respectively.
The pricing of the term loan will be LIBOR plus 3.75%, 225 basis
points less than the rate applicable to the Company’s previous term
debt.
Initial funding from the new term loan will be
used to repay the TaxAct – HD Vest 2015 credit facility, redeem
Blucora’s convertible senior notes outstanding on June 5, 2017, and
pay related fees and expenses associated with the new credit
facility. Remaining proceeds, if any, may also be used for
general corporate purposes.
"This new credit facility will simplify our
capital structure, extend the tenor of our borrowings and is
expected to reduce cash interest expense by approximately $3.4
million annually,” said Eric Emans, Blucora’s Chief Financial
Officer. “This transaction represents a continuation of the work we
have done over the past 17 months to significantly reduce our net
leverage and strengthen Blucora’s capital structure, while focusing
on organic execution.”
Credit Suisse served as lead arranger and is
acting as administrative agent for the facility. Additionally, Key
Bank National Association and SunTrust Robinson Humphrey, Inc.
served as joint lead arrangers and joint bookrunners for the
syndicate.
About Blucora®Blucora, Inc. (NASDAQ:BCOR) is a
leading provider of technology-enabled financial solutions to
consumers, small businesses and tax professionals. Our products and
services in tax preparation and wealth management, through TaxAct
and HD Vest, help consumers manage their financial lives. TaxAct is
an affordable digital tax preparation solution for individuals,
business owners and tax professionals. HD Vest Financial Services®
supports an independent network of tax professionals who provide
comprehensive financial planning solutions. For more information on
Blucora or its businesses, please visit www.blucora.com.
Forward-Looking StatementsThis release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Actual results may differ significantly from
management’s expectations due to various risks and uncertainties
including, but not limited to: risks associated with Blucora,
Inc.’s (the “Company”) strategic transformation and the successful
execution of its strategic initiatives, operating plans and
marketing strategies; general economic, political, industry, and
market conditions; the Company’s ability to attract and retain
productive advisors; the Company’s ability to successfully make
technology enhancements and introduce new products and services;
information technology and cybersecurity risks; the effect of
current, pending and future legislation, regulation and regulatory
actions, such as the new Department of Labor rule and any changes
in tax laws; dependence on third parties to distribute products and
services; litigation risks; the Company’s ability to hire, retain
and motivate key employees; the Company’s ability to protect its
intellectual property; and financing risks, including risks related
to the Company’s debt obligations. A more detailed description of
these and certain other factors that could affect actual results is
included in the Company’s filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. The Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this release.
Contact:
Bill Michalek
Blucora Investor Relations
(972) 870-6463
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