New Financing Reduces Interest Expense, Removes Cumbersome Covenants, and Increases Operating Flexibility
CHARLOTTE, N.C., Aug. 22, 2025 /PRNewswire/ -- LendingTree, Inc. (NASDAQ:TREE), the nation's leading online financial services marketplace, today announced the successful closing of a $475 million credit facility, consisting of a new $400 million five-year Term Loan B and a $75 million revolving credit facility. The financing replaces the company's existing Term Loan B due 2028 and its loan agreement with Apollo, delivering significant benefits to LendingTree's capital structure and strategic flexibility.
"This transaction marks a major milestone in our ongoing efforts to enhance our financial foundation," said Jason Bengel, Chief Financial Officer of LendingTree. "The new facility will reduce our interest expense, eliminate several restrictive covenants from prior agreements, and reward shareholders with a lower cost of capital that is reflective of our improved growth trajectory. Going forward this new facility enables us to operate with more flexibility, invest in the business, and opportunistically repurchase shares."
The facility, led by Bank of America as lead left arranger and bookrunner and Truist Securities as joint lead arranger and bookrunner, provides LendingTree with a simplified and more cost-efficient debt profile. Key terms include:
- $400 million Term Loan B and $75 million Revolver, both with five-year maturities
- Interest rates of SOFR + 450 bps on the term loan and SOFR + 350 bps on the revolver
- The facility includes a 25-basis point reduction in interest margin upon achieving a B2 rating with a stable outlook from Moody's
- Use of proceeds includes refinancing of existing debt and general corporate purposes
- Reduced restrictive covenants, including the removal of minimum cash and AEBITDA requirements associated with the Apollo loan agreement, and we regain the ability to repurchase shares and make strategic investments
- The revolving credit facility enhances liquidity and operational flexibility
"This refinancing is a strategic move that strengthens our balance sheet and gives us the flexibility to execute on our long-term vision," said Doug Lebda, Chairman and CEO of LendingTree. "We're now in a stronger position to grow the business, pursue new opportunities, and drive long-term shareholder value."
Additional details on the transaction can be found in the Company's Form 8-K filed with the Securities and Exchange Commission on August 21, 2025.
LendingTree cautionary note regarding forward-looking statements
The matters contained in the discussion above may be considered to be "forward-looking statements" within the meaning of the securities act of 1933 and the securities exchange act of 1934, as amended by the private securities litigation reform act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team, and there can be no assurance that LendingTree will achieve its objectives. For further discussion of risks and uncertainties relevant to LendingTree's business, please see LendingTree's most recent form 10-K filed with the U.S. Securities and exchange commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
About LendingTree
LendingTree, inc. Is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree"). LendingTree is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of approximately 430 financial partners. Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins. LendingTree, inc. Is headquartered in charlotte, NC.
Contact
[email protected]
View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingtree-announces-closing-of-475-million-credit-facility-302536190.html
SOURCE LendingTree, Inc.