- Secured a 5-year, $50 million term debt and $7 million revolver facility from MGG Investment Group
- Retired original facility seven months in advance of maturity due to strong cash flow
- Retired $5 million outstanding obligation to former Future Ads owners
- $55 million cumulative reduction in debt and other future obligations since Future Ads merger in January 2015
IRVINE, Calif., May 31, 2018 (GLOBE NEWSWIRE) -- Propel Media, Inc. (OTC Pink:PROM), a performance focused digital media and advertising company, today announced that it has entered into a new 5-year, $50 million term and $7 million revolver credit facility with MGG Investment Group.
The original $81 million term and $15 million revolving facility was entered into in January 2015 in connection with Propel Media’s merger with Future Ads. The original facility was set to mature in January 2019 and had $53.2 million outstanding when it was retired in full on May 30, 2018.
Additionally, in connection with the 2015 merger with Future Ads, the Company incurred a $10 million deferred obligation to the former owners of Future Ads. On May 31, 2018, the Company is paying $5 million of this obligation. The Company and the former owners of Future Ads have agreed to extend the due date of the final $5 million payment to June 30, 2023.
“We have successfully refinanced our credit facility with MGG, which participated in our original 2015 financing and has been an excellent partner over the last three and a half years,” said Marv Tseu, Chief Executive of Propel Media. “Because of our strong free cash flow during the last several years, we have been successful in reducing our debt and future obligations by approximately $55 million since the January 2015 merger with Future Ads, which is equal to approximately $0.22 per outstanding share. We also used excess cash last year to acquire DeepIntent, our Company’s artificial intelligence and audience insights platform business. This refinancing significantly improves our balance sheet and provides Propel Media with the capital structure to continue to pursue exciting growth opportunities,” said Mr. Tseu.
“We are pleased to be the sole credit provider to Propel Media as a result of this transaction. We have had an excellent relationship with the Company for several years, and we are very pleased to continue our partnership,” said Kevin Griffin, Chief Executive Officer, MGG Investment Group.
Further details concerning these transactions can be found in the Company’s Form 8-K filed with the Securities and Exchange Commission on May 30, 2018.
About Propel Media
Propel Media connects digital marketers with unique audiences through intent-based technology that delivers superior performance with measurable results. We “Do Digital Differently” with a distinctive approach to digital powered by proprietary contextualization technology and a unique supply of ad inventory. Headquartered in Irvine, California, Propel Media is distinguished by its ability to deliver consistent results and its commitment to providing the highest level of client services to its partners.
For more information visit: www.propelmedia.com
Forward-Looking Statements:
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those statements regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and future financial performance and any other statements that are not statements of historical fact. These statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,” “will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media’s reports filed with the SEC. Among the factors that could cause Propel Media’s actual results to differ materially are: loss of key advertising customers; inability to acquire new advertising customers; limitations on its ability to acquire new users profitably or at all; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions. Further, investors should keep in mind that Propel Media’s financial results in any particular period may not be indicative of future results. Propel Media is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law.
Press Contact:
David Shapiro
Propel Media
press@propelmedia.com