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MarketWise enters $150 million three-year revolving loan agreement
By Marisa Wong
Los Angeles, Nov. 1 – MarketWise, LLC, the direct subsidiary of MarketWise, Inc., entered into a loan and security agreement on Oct. 29 for up to $150 million of commitments under a revolving credit facility, including a $5 million letter-of-credit sublimit, according to a press release and an 8-K filing with the Securities and Exchange Commission.
HSBC Bank USA, NA is administrative agent, collateral agent and also joint lead arranger and joint bookrunner alongside BMO Capital Markets Corp.
HSBC Bank, BMO Harris Bank NA, Silicon Valley Bank, Wells Fargo Bank, NA and PNC Bank NA are lenders.
The credit facility is guaranteed by the borrower’s direct and indirect material U.S. subsidiaries. Borrowings are secured by a first-priority lien on substantially all of the assets of the borrower and the guarantors.
The credit facility has a term of three years, maturing on Oct. 29, 2024.
The agreement allows for revolving commitments to be increased or new term commitments to be established by up to $65 million.
Borrowings will bear interest at Libor or Euribor, subject to a 0% floor, plus an applicable rate ranging from 150 basis points to 225 bps, in each case depending on the borrower’s net leverage ratio.
The company will also pay an unused commitment fee ranging from 25 bps to 35 bps based on unused capacity and the net leverage ratio.
The company may use loan proceeds to finance permitted acquisitions and for working capital and other general corporate purposes.
The agreement contains financial maintenance covenants that require the borrower to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a net leverage ratio of not more than 2.00 to 1.00 (which may be increased to 2.50 to 1.00 following a permitted acquisition for which the aggregate cash consideration exceeds $50 million).
The financial research company is based in Baltimore.
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