The Meet Group Announces Successful Completion of Debt Refinancing and Reports on Share Repurchase Progress
September 04 2019 - 8:00AM
Business Wire
- New $60 million credit facility improves financial flexibility
and cash flow; increases allowable annual share repurchase
threshold - $9 million in shares bought back since July
The Meet Group, Inc. (NASDAQ: MEET), a leading provider of
interactive livestreaming solutions, today announced the successful
completion of its debt refinancing and reported on its share
repurchase progress.
The new $60 million credit facility consists of a $35 million
term loan which was fully drawn at closing and a $25 million
revolving line of credit for general corporate purposes. The new
facility replaces and terminates the Company’s prior facility. The
new term loan matures on August 29, 2022 and amortizes at 10% per
year, a reduction from 25% per year in the prior facility.
Geoff Cook, CEO of The Meet Group, commented, “The strong
execution of our livestreaming video strategy has enabled us to
improve our financial position and successfully refinance our debt.
In addition to reducing our cost of borrowing, the new debt
facility allows for increased annual spending for share repurchases
of up to $30 million annually, up from $10 million annually allowed
under the prior facility.
“We have been actively buying the Company’s stock over the past
several months and are committed to continuing the program,” added
Cook. “We believe that current prices provide an attractive basis
for repurchase.”
As of August 30, 2019, the Company had repurchased 2.54 million
shares of its common stock for approximately $9 million under the
current $30 million plan authorized through 2021.
The new credit facility was provided through a banking syndicate
arranged by BofA Securities, Inc. and JPMorgan Chase Bank, N.A.
About The Meet Group
The Meet Group (NASDAQ: MEET) is a leading provider of
interactive livestreaming solutions designed to meet the universal
need for human connection. Our ecosystem of livestreaming apps
enables users around the world to interact through one-to-many
livestreaming broadcasts and text-based conversations. Our top
apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live
interactions and meaningful connections to millions of users daily.
Headquartered in New Hope, PA, we have offices in Philadelphia, San
Francisco, Dresden, and Berlin. The Meet Group is committed to
safety. You can find a description of current safety practices
here: https://www.themeetgroup.com/safety-practices/. For more
information, visit themeetgroup.com, and follow us on Facebook,
Twitter or LinkedIn.
Forward-Looking Statements
Certain statements in this press release made by The Meet Group,
Inc. are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including whether
the $25 million revolving line of credit will be available for
future needs; whether we will increase our share buybacks to $30
million annual limit; and whether we will continue to repurchase
shares at current prices as expected. All statements other than
statements of historical facts contained herein are forward-looking
statements. The words “believe,” “may,” “estimate,” “continue,”
“anticipate,” “intend,” “should,” “plan,” “could,” “target,”
“potential,” “project,” “outlook,” “is likely,” “expect” and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. Further information on our risk factors
is contained in our filings with the Securities and Exchange
Commission (“SEC”), including the Form 10-K for the year ended
December 31, 2018 filed with the SEC on March 8, 2019. Any
forward-looking statement made by us herein speaks only as of the
date on which it is made. Factors or events that could cause our
actual results to differ may emerge from time to time, and it is
not possible for us to predict all of them. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190904005309/en/
Investor Contact: Leslie Arena larena@themeetgroup.com
267-714-6418
Media Contact: Brandyn Bissinger bbissinger@themeetgroup.com
267-446-7010
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