Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced that it has
entered into an amended secured credit facility with JPMorgan Chase
Bank, N.A. and a syndicate of banks, including $186.7 million in
senior secured term loans and a $120 million unfunded revolving
line of credit. The new facility increases the revolving credit
facility from $70 million to $120 million and adds a $20 million
incremental term loan (of which $19 million was used to pay off the
existing revolving credit facility draw) to the existing $166.7
million term loan. The new facility, which replaces Avid’s existing
secured credit facility, includes more favorable terms and does not
result in any changes to financial covenants, pricing or the
February 2027 maturity.
“Given the strength of Avid's business and improving financial
profile, Avid received strong support from its bank group to term
out the existing revolver borrowings into a new term loan and
increase the undrawn revolver availability on more favorable
terms,” commented Ken Gayron, Avid’s Executive Vice President and
Chief Financial Officer. Mr. Gayron continued, “Although our total
outstanding debt has not changed materially as of the completion of
the transaction, the additional undrawn revolver availability
provides Avid more financial flexibility to execute our growth
plans and execute our capital deployment strategy as we work to
enhance returns for Avid shareholders.”
JPMorgan Chase Bank, N.A., Citizens Bank, N.A., PNC
Capital Markets LLC, Silicon Valley Bank, and Truist
Securities, Inc. served as the Joint Bookrunners and Joint
Lead Arrangers for the new credit facility with JPMorgan Chase
Bank, N.A. serving as Administrative Agent, and Citizens Bank
N.A., PNC Bank, National Association, Silicon Valley
Bank, and Truist Bank serving as Co-Syndication
Agents.
Forward-Looking
StatementsCertain information provided in this
press release includes forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange
Act of 1934, which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Examples
of forward-looking statements include statements regarding our
future financial performance or position, results of operations,
business strategy, plans and objectives of management for future
operations, and other statements that are not historical fact. You
can identify forward-looking statements by their use of
forward-looking words such as “may”, “will”, “anticipate”,
“expect”, “believe”, “estimate”, “intend”, “plan”, “should”,
“seek”, or other comparable terms.
Readers of this press release should understand that these
forward-looking statements are not guarantees of performance or
results. Forward-looking statements provide our current
expectations and beliefs concerning future events and are subject
to risks, uncertainties, and factors relating to our business and
operations, all of which are difficult to predict and could cause
our actual results to differ materially from the expectations
expressed in or implied by such forward-looking statements.
These risks, uncertainties, and factors include, but are not
limited to: risks related to the impact of the ongoing coronavirus
(COVID-19) pandemic and subsequent variants on our business,
suppliers, consumers, customers and employees; economic, social,
and political instability, security concerns, and the risk of war,
armed conflict and/or cyber conflict, particularly originating in,
and complicated by, areas of heightened geopolitical tension and
open conflict such as Ukraine, where we have outsourced research
and development activities, Russia, and bordering territories; our
liquidity; our ability to execute our strategic plan including our
cost saving strategies, and to meet customer needs; our ability to
retain and hire key personnel; our ability to produce innovative
products in response to changing market demand, particularly in the
media industry; our ability to successfully accomplish our product
development plans; competitive factors; history of losses;
fluctuations in our revenue based on, among other things, our
performance and risks in particular geographies or markets; our
higher indebtedness and ability to service it and meet the
obligations thereunder; restrictions in our credit facilities; our
move to a subscription model and related effect on our revenues and
ability to predict future revenues; fluctuations in subscription
and maintenance renewal rates; elongated sales cycles; fluctuations
in foreign currency exchange rates; seasonal factors; adverse
changes in economic conditions; variances in our revenue backlog
and the realization thereof; risks related to the availability and
prices of raw materials, including any negative effects caused by
inflation, armed conflict and related sanctions, weather
conditions, or health pandemics; disruptions, inefficiencies,
and/or complications in our operations and/or dynamic and
unpredictable global supply chain, including interruptions, delays,
complications, and other impacts related to armed conflict and/or
cyber conflict and related international sanctions and reprisals
and the ongoing COVID-19 pandemic and subsequent variants; the
costs, disruption, and diversion of management's attention due to
the ongoing COVID-19 pandemic and subsequent variants, armed
conflict and/or cyber conflict and related international sanctions
and reprisals; the possibility of legal proceedings adverse to our
Company; and other risks described in our reports filed from time
to time with the U.S. Securities and Exchange Commission. Moreover,
the business may be adversely affected by future legislative,
regulatory or other changes, including tax law changes, as well as
other economic, business and/or competitive factors. The risks
included above are not exhaustive. We caution readers not to place
undue reliance on any forward-looking statements included in this
press release which speak only as to the date of this press
release. We undertake no responsibility to update or revise any
forward- looking statements, except as required by law.
Avid Powers
Greater CreatorsPeople who create
media for a living become greater creators with Avid’s
award-winning technology solutions to make, manage and monetize
today’s most celebrated video and audio content—from iconic movies
and binge-worthy TV series, to network news and sports, to recorded
music and the live stage. What began more than 30 years ago with
our invention of nonlinear digital video editing has led to
individual artists, creative teams and organizations everywhere
subscribing to our powerful tools and collaborating securely in the
cloud. We continue to re-imagine the many ways editors, musicians,
producers, journalists, and other content creators will bring their
stories to life. Discover the possibilities at avid.com and join
the conversation on social media with the multitude of brilliant
creative people who choose Avid for a lifetime of success.
© 2022 Avid Technology, Inc., Avid and its logo are property of
Avid. All rights reserved. Other trademarks are property of their
respective owners.
InvestorsWhit
Rappolewhit.rappole@avid.com339.222.1110
MediaJim
Sheehanjim.sheehan@avid.com978.771.4715
Avid Technology (NASDAQ:AVID)
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