Benzinga | Apr 5, 2021 11:32AM EDT

Magnite Stock Is Trading Lower On Raising $412.5M Debt To Finance SpotX Acquisition

* Magnite Inc (NASDAQ: MGNI) priced and syndicated a 7-year $360 million senior secured term loan B and a 5-year $52.5 million senior secured revolving credit facility.

* The offering proceeds of the Term Loan B and existing $400 million convertible notes due 2026 will be used to pay the cash purchase price of the SpotX acquisition, related transaction fees and expenses, and excess cash for operations.

* The convertible note proceeds will help lower SpotX acquisition-related debt financing from Goldman Sachs by $200 million and reduce equity dilution from the SpotX acquisition by 1.6 million shares. The notes carried a conversion premium of 100% following capped call addition.

* Magnite held cash and cash equivalent of $117.7 million as of Dec. 31, 2020.

* Price action: MGNI shares traded lower by 7.38% at $39.60 on the last check Monday.