Smart Global announces refinancing transaction
SMART Global Holdings announced the refinancing of the Senior Secured Credit Agreement of its operating group. The transaction increases the principal amount of the Term Loans from $151 million to $165 million. The maturity on the Term Loans is extended to August 2022, while the maturity on the Revolver is extended to February 2022. The Term Loans bear interest at LIBOR + 6.25% and the rate on the Revolver is unchanged at LIBOR + 4.00%. As a result of refinancing the Term Loans, 1.9 million second tranche warrants exercisable at $0.03 per share previously issued to lenders, have been terminated. The Revolver and Term Loans continue to be guaranteed by certain subsidiaries and are secured by a first-lien pledge on the assets of the guarantors and a pledge of the equity interest in certain subsidiaries. SMART Global Holdings, Inc. is not a party to or a guarantor of the amended credit facility."We are pleased to announce this refinancing transaction, which extends the maturity date of the Term Loans and substantially reduces interest expense for SMART," commented Iain MacKenzie, President & Chief Executive Officer of SMART Global Holdings. "The pay down in debt with the proceeds of our recent IPO, combined with the decrease in interest rates from this refinancing, reduces our annual interest expense by approximately $8 million and provides SMART with greater operating flexibility, enabling increased focus on driving the performance of our businesses."