LendingTree jumps on $175 mln financing from Apollo Funds

LendingTree

28/03/2024 17:43

** Online lending marketplace LendingTree's  TREE.O  shares
rise as much as 6.1%; last up 3.8% at $42.43
    ** Company has secured up to $175 mln in financing from
Apollo Funds, it said after market close on Wednesday 
    ** TREE intends to draw $125 mln from the financing, which
may be used for repayment of existing debt
    ** Ratings agency Moody's expects TREE to use proceeds to
specifically repay near-term convertible debt, a security that
can convert into stock or cash if certain conditions are met,
due 2025
    ** TREE has been keen not to use equity dilution to address
maturity of convertible debt for last year or so
    ** Company in a much better position to repurchase or pay
down convertible debt with new financing - Northland Capital
Markets analyst Mike Grondahl
    ** TREE has improved liquidity and taken risk of further
issues with convertible debt off the table - Grondahl 
    ** As of last close, company's shares up 35.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))