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Avid Announces Debt Refinancing, Expects to Improve Cash Flow by $10M

Avid
(Image credit: Avid)

BURLINGTON, Mass.—Avid has entered into a new five-year $180 million term loan and $70 million revolving credit facility that it intends to use for working capital, other general corporate purposes and for other permitted uses.

The company’s loan is with JP Morgan Chase Bank and a syndicate of other banks has been used to repay outstanding debt of $201 million with Cerberus Business Finance.

Avid said the terms of the new credit facility will provide it with significantly incremental flexibility to support its strategy and growth plans.

“The continued growth of Avid’s software subscriptions and our improving business performance and Free Cash Flow profile in recent periods have enabled us to put in place a cost-effective capital structure,” said Avid CEO and President Jeff Rosica. “With the completion of the refinancing, we believe we are well positioned to execute on our strategy and continue improving our profitability and Free Cash Flow generation.”

“We are pleased with the successful execution of our new credit facility,” added Ken Gayron, chief financial officer. “We have capitalized on the recent successes in our business to significantly reduce our cost of debt, further strengthening our balance sheet, extending our maturities and providing additional financial flexibility and liquidity. We experienced very strong demand for this transaction, demonstrating the confidence that our lenders have in Avid’s current and long-term outlook.”