By Wendy Van Sickle
Columbus, Ohio, Dec. 20 – Arena Group Holdings, Inc. issued $36 million of 12% senior secured bridge notes to repay $5.9 million of its existing delayed-draw term notes due Dec. 31, 2022, according to an 8-K filed with the Securities and Exchange Commission.
BRF Finance Co., LLC was the agent and purchaser.
On each of March 1, 2023, May 1, 2023 and July 1, 2023, the interest rate will increase by 1.5% per annum.
The bridge notes are subject to certain mandatory prepayment requirements, including, but not limited to, a requirement that the company apply the net proceeds from certain debt incurrences or equity offerings to repay the bridge notes.
Also on Dec. 15, the company entered into an amendment to its financing and security agreement with SLR Digital Finance LLC under which the maximum credit limit for the company’s line of credit was increased to $40 million (subject to 85% of accounts receivable); the interest rate was amended to be the Prime rate plus 400 basis points; and the maturity of was extended to Dec. 31, 2024; provided that the maturity date will be Dec. 31, 2023 if the company has not refinanced, repaid or extended all of its senior secured notes due Dec. 31, 2023 by Aug. 31, 2023.
The notes were sold in order to consummate Arena Media Brands, LLC’s acquisition of the digital media operations of Men’s Journal and other men’s active lifestyle brands.
Arena Group is a tech-powered media company that is based in New York.
| Issuer: | Arena Group Holdings, Inc.
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| Amount: | $36 million
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| Issue: | Senior secured bridge notes
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| Maturity: | Dec. 31, 2023
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| Agent and purchaser: | BRF Finance Co., LLC
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| Coupon: | 12%, will increase by 1.5% per annum on each of March 1, 2023, May 1, 2023 and July 1, 2023
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| Settlement date: | Dec. 15
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