J2 Global enters $100 million five-year revolving credit facility

By Marisa Wong

Los Angeles, April 9 – J2 Global, Inc. entered into a credit agreement on April 7 for a $100 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

MUFG Union Bank, NA is administrative agent, collateral agent and lead arranger.

J2 may, from time to time, request increases in the commitments under the credit agreement in an aggregate amount up to $250 million, for a total commitment of up to $350 million.

The applicable margin for Libor loans ranges from 150 basis points to 225 bps, depending on the company’s total leverage ratio.

The revolver matures on April 7, 2026.

The credit agreement contains financial maintenance covenants, including a maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 4.00 to 1.00 and a minimum interest coverage ratio as of the last date of any fiscal quarter not less than 3.00 to 1.00.

Loan proceeds are intended to be used for working capital and general corporate purposes.

J2 is a digital media company based in Los Angeles.

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