Angie’s List gets $60 million term loan, $25 million delayed-draw loan

By Angela McDaniels

Tacoma, Wash., Sept. 29 – Angie's List, Inc. entered into a $85 million credit agreement on Friday that provides for a $60 million senior secured term loan and a $25 million senior secured delayed-draw facility, according to an 8-K filing with the Securities and Exchange Commission.

Both loans mature Sept. 26, 2019.

The delayed-draw facility is available for borrowing through the third quarter of 2017.

The interest rate is Libor plus 675 basis points. The Libor floor is 0.5%.

The amortization is $750,000 per quarter on the term loan and 1.25% on the outstanding balance of any delayed-draw term loan, in each case beginning with the quarter ending Sept. 30, 2016.

The company may prepay the loans at any time and must prepay the loans with (a) the net proceeds of certain asset sales, issuances of debt or equity and certain casualty events and (b) up to 50% of consolidated excess cash flow.

The company must pay a 1% prepayment premium on prepayments made on or before Sept. 26, 2015.

The credit facility is secured by substantially all of the company’s assets.

TCW Asset Management Co. is the administrative agent and collateral agent.

The company used a portion of the proceeds from the term loan to retire $15 million of debt that was outstanding under its prior facility due 2015.

“The new debt structure will provide us with additional flexibility and liquidity to continue to invest in growth while reducing our interest rate and further strengthening our balance sheet,” chief financial officer Tom Fox said in a company news release.

Indianapolis-based Angie’s List operates a website where members can research, hire, rate and review local professionals for home, health-care and automotive services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.