Magnite reduces term loan interest rate by 50 basis points

Magnite, a sell-side advertising technology company listed on NASDAQ under the ticker symbol MGNI, has announced a reduction in the interest rate for its senior secured term loan facility by 50 basis points. The new rate is set at Term SOFR plus 2.50%, down from the previous rate of Term SOFR plus 3.00%. This rate improvement will result in annualized cash interest savings of approximately $1.8 million.

The term loan is scheduled for maturity in February 2031, with no changes to the maturity date following this repricing. This marks the third time the term loan facility has been repriced, with a cumulative reduction of 250 basis points compared to the rate prior to the refinancing in February 2024. Additionally, the interest rate margin under the $175 million revolving credit facility has been reduced by 100 basis points, with borrowings now bearing interest at Term SOFR plus a margin ranging from 2.5% to 3.0%, down from the previous range of 3.5% to 4.0%.

Magnite's CFO, Brian Gephart, attributed the successful repricing to the company's strong balance sheet, robust cash flow generation, and ongoing confidence from lending partners in Magnite's long-term growth trajectory.

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