Magnite completes third repricing of $358 million term loan

Magnite (NASDAQ: MGNI) completed the third successful repricing of its $358 million senior secured term loan facility due February 2031 and its $175 million senior secured revolving credit facility maturing in February 2029. The term loan adjustment reduces the interest rate by 50 basis points, bringing the new rate to Term SOFR plus 2.50%, down from the previous Term SOFR plus 3.00%. Magnite stated that this rate reduction generates approximately $1.8 million in annualized cash interest savings. This specific improvement is part of a cumulative reduction of 250 basis points compared to the rate in place before Magnite refinanced the term loan in February 2024. The maturity date of the term loan remains February 2031, and all other terms are substantially unchanged.

Simultaneously, Magnite reduced the interest rate margin on its $175 million revolving credit facility by 100 basis points. Borrowings under this facility will now accrue interest at Term SOFR plus a margin ranging from 2.5% to 3.0%, a decrease from the prior margin range of 3.5% to 4.0%. The company noted that all other material terms of the revolving credit facility remain substantially unchanged.

Brian Gephart, CFO of Magnite, attributed the successful repricing to the continued strength of the company's balance sheet and robust cash flow generation. He also cited the ongoing confidence of lending partners in Magnite's long-term growth trajectory. Gephart emphasized that lowering borrowing costs across both facilities provides enhanced financial flexibility and optimizes value for shareholders.

Magnite, which identifies as the world's largest independent sell-side advertising company, operates offices across North America, EMEA, LATAM, and APAC. Its technology allows publishers to monetize content across CTV, online video, display, and audio formats, while enabling agencies and brands to access brand-safe ad inventory.