KLDiscovery Refinances Debt To Bolster Cash Flow

KLDiscovery Inc. (OTC: KLDI) has refinanced current debt commitments with Wilmington Trust, National Association, and certain lenders to raise the borrowing capacity and reduce principal amortization and yearly debt payments from $17m to $3 million.
The new agreement encompasses an initial term loan of $300 million, delayed draw term loans of $50 million, revolving credit loans of $40 million.
The revolving credit loan represents an increase of $10 million over the prior balance.
The initial term loans and delayed draw term loans will accrue interest at the Adjusted Eurocurrency Rate plus 6.50% p.a., or the Base Rate plus 5.50% p.a.
The revolving credit loans will accrue interest at the Adjusted Eurocurrency Rate plus 4% p.a., or the Base Rate plus 3% p.a.
The initial term loans and delayed draw term loans will amortize at 1% of the aggregate principal amount of respective loan outstanding balances, payable quarterly compared to the previous amortization rate of 5%.
The revolving credit loans, initial term loans, and delayed draw term loans will mature at the earlier of February 8, 2026, and six months before the maturity of its convertible debentures due 2024.
“Lowering our annual debt payments significantly improves our annual cash flow,” said KLDiscovery CEO Christopher Weiler.
Price action: KLDI shares closed lower by 5.29% at $8.05 Monday.