Perion Successfully Refinances $25 Million Loan Facility; Provides Increased Flexibility to Continue Technology Innovation
18 December 2018 - 11:00PM
Business Wire
Demonstrates financial discipline and meets
plan to continue debt reduction from $86.9 Million at the end of
2016 to $39.3 Million today
Perion Network Ltd. (NASDAQ: PERI), a global innovator in
delivering digital marketing solutions for brands that are
relentlessly focused on their consumer relationships, announced
today that ClientConnect Ltd., an Israeli subsidiary of Perion,
executed a new loan facility with Mizrahi Tefahot Bank Ltd. an
Israeli bank, in the amount of US$25 million.
Perion Network Ltd. (NASDAQ: PERI), a global innovator in
delivering digital marketing solutions for brands that are
relentlessly focused on their consumer relationships, announced
today that ClientConnect Ltd., an Israeli subsidiary of Perion,
executed a new loan facility with Mizrahi Tefahot Bank Ltd. an
Israeli bank, in the amount of US$25 million.
“Our strategy has been to both take costs out of the business
and invest in technology to enable Perion to continue to stay at
the leading edge of digital technology,” said Doron Gerstel, CEO of
Perion. Mr. Gerstel added “It is gratifying that the financial
community recognizes our substantial progress.”
The new $25 million loan will replace two debt facilities which
would now be consolidated into a single debt facility with Bank
Mizrahi. The first is the existing debt of ClientConnect with Bank
Mizrahi in an amount of approximately $2.5 million and the second
is Undertone’s credit facility in an amount of approximately $21
million with SunTrust Bank.
Principal on the loan is payable in 12 equal quarterly
instalments beginning in March 2019. Interest is at the rate of
three-month LIBOR plus 5.7% per annum.
“As this new loan facility refinances two loans, it enables the
group to better manage its debt service by extending the maturity
date, rescheduling and redistributing principal payments on the
loan and improve Perion’s flexibility related to global cash
management”, commented Maoz Sigron, Perion’s Chief Financial
Officer.
The credit facility is scheduled to mature on December 31,
2021.
About Perion Network Ltd. Perion is a global technology
company that delivers advertising solutions to brands and
publishers. Perion is committed to providing data-driven execution,
from high-impact ad formats to branded search and a unified social
and mobile programmatic platform. More information about Perion may
be found at www.perion.com, and follow Perion on Twitter
@perionnetwork.
Forward Looking Statements
This press release contains historical information and
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995 with respect to the
business, financial condition and results of operations of Perion.
The words “will”, “believe,” “expect,” “intend,” “plan,” “should”
and similar expressions are intended to identify forward-looking
statements. Such statements reflect the current views, assumptions
and expectations of Perion with respect to future events and are
subject to risks and uncertainties. Many factors could cause the
actual results, performance or achievements of Perion to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, or financial information, including,
among others, the failure to realize the anticipated benefits of
companies and businesses we acquired and may acquire in the future,
risks entailed in integrating the companies and businesses we
acquire, including employee retention and customer acceptance; the
risk that such transactions will divert management and other
resources from the ongoing operations of the business or otherwise
disrupt the conduct of those businesses, potential litigation
associated with such transactions, and general risks associated
with the business of Perion including intense and frequent changes
in the markets in which the businesses operate and in general
economic and business conditions, loss of key customers,
unpredictable sales cycles, competitive pressures, market
acceptance of new products, inability to meet efficiency and cost
reduction objectives, changes in business strategy and various
other factors, whether referenced or not referenced in this press
release. Various other risks and uncertainties may affect Perion
and its results of operations, as described in reports filed by
Perion with the Securities and Exchange Commission from time to
time, including its annual report on Form 20-F for the year ended
December 31, 2017 filed with the SEC on March 27, 2018. Perion does
not assume any obligation to update these forward-looking
statements.
Source: Perion Network Ltd.
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version on businesswire.com: https://www.businesswire.com/news/home/20181218005409/en/
Perion Network Ltd.Investor relationsHila Valdman+972 (73)
398-1000Investors@perion.com
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