CHARLOTTE, NC – [Date of Publication] – LendingTree (NASDAQ:TREE) announced Friday a strategic financial move, securing a new $475 million credit facility aimed at optimizing its capital structure, reducing interest expenses, and enhancing financial flexibility. The news was met positively by investors, with shares climbing 1.19% in pre-market trading to $63.90.
The new facility is composed of a $400 million Term Loan B and a $75 million revolving credit facility, both structured with five-year maturities. The Term Loan B carries an interest rate of SOFR (Secured Overnight Financing Rate) plus 450 basis points (bps), while the revolving credit facility will bear interest at SOFR plus 350 bps.
Proceeds from this significant financing are primarily earmarked for refinancing existing debt and for general corporate purposes, offering LendingTree greater operational latitude.
This new financing package replaces the company’s existing Term Loan B, which was set to mature in 2028, and also supersedes a separate loan agreement with Apollo. The restructuring is expected to yield substantial benefits for the online lending marketplace.
“The new facility will reduce our interest expense, eliminate several restrictive covenants from prior agreements, and reward shareholders with a lower cost of capital that is reflective of our improved growth trajectory,” stated Jason Bengel, Chief Financial Officer of LendingTree. His comments underscore the company’s confidence in its financial health and future prospects.
LendingTree operates as an online marketplace connecting consumers with a broad array of financial products. Its platform allows users to compare options for various needs, from personal loans — including those tailored for bad credit or emergency situations — to payday loans, and even specialized financial products like business loans and SBA loans for entrepreneurs. By streamlining its debt structure, LendingTree is positioning itself to better serve its expansive customer base and capitalize on market opportunities in the diverse lending landscape it facilitates.
