Magnite (NASDAQ: MGNI) announced the successful repricing of its outstanding loans under the senior secured term loan facility, resulting in a reduction of the interest rate by 75 basis points to term SOFR + 3.75% from the previous rate of term SOFR + 4.5%. This repricing represents a cumulative reduction of 125 basis points compared to the rate prior to the refinancing of the term loan in February.
The $364 million repricing is expected to generate over $2.7 million in yearly interest payment savings for Magnite. Importantly, there are no changes to the maturity of the term loan following this repricing, and all other terms remain substantially unchanged. It is worth noting that this repricing has no impact on the company’s convertible notes, due in March 2026, or its revolving credit facility, which matures in February 2029.
This move reflects Magnite's proactive approach to optimizing its financial position and reducing interest expenses. The company's ability to secure significant interest rate savings demonstrates its commitment to efficient capital management and enhancing shareholder value. The market has reacted to these announcements by moving the company's shares 1.4% to a price of $13.3. For more information, read the company's full 8-K submission here.
