TiVo Locks In $715M Loan Ahead of April 2020 Split
SAN JOSE, Calif. -- TiVo Corporation (NASDAQ: TIVO), TiVo Corporation (NASDAQ: TIVO), the company that brings entertainment together, today announced that on November 22, 2019, the Company entered into a new $715.0 million five-year Term Loan Credit Agreement with HPS Investment Partners, LLC as administrative and collateral agent, plus a $60M Revolving Loan Credit Agreement with Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank, National Association. TiVo used the proceeds of the new Term Loan Credit Agreement to repay loans under its existing term loan B facility and add cash to the balance sheet in anticipation of the spin-off of its Product business.
TiVo Corporation intends to pay-off the remaining balance of its exiting 2020 Convertible Senior Notes when they mature with cash on hand, and the Revolving Loan Credit Agreement provides additional flexibility to facilitate the separation of the two businesses.
"This is significant progress for TiVo as we prepare for a separation of our IP Licensing and Product businesses. Getting the right capital structure in place for both businesses was a critical factor to the separation, and the agreement we are announcing today is a major milestone towards TiVo becoming two independent businesses," commented Dave Shull, TiVo president and chief executive officer. "We are also reaffirming the 2019 Full Year Outlook provided on our last quarterly earnings call on November 7, 2019 as the terms of the new Term Loan Credit Agreement were contemplated in providing such estimates. TiVo remains actively involved in strategic discussions, while also preparing for a separation into two independent companies by April of 2020."