Trade Desk Inc (NASDAQ:TTD), which offers a technology platform for ad buyers globally, has secured a $200 million credit facility. The administrative agent and lead arranger of the credit facility was Citibank N.A. Other additional lenders included Bank Hapaolim, Union Bank, US Bank, East West Bank and City National Bank.
With the facility, Trade Desk will be able to restate and amend the firm’s present outstanding credit facility as the company will be able to borrow amounts totaling $200 million. This will be at a yearly rate of LIBOR or prime. There will also be an applicable margin. Some of the purposes the facility could be put to includes acquisitions, working capital as well as general corporate purposes.
“We are really pleased to close on this secured credit facility at very attractive interest rates in an oversubscribed deal from such a strong group of lenders. This revolver will provide the Company with financial flexibility,” The Trade Desk’s Chief Financial Officer Paul Ross said.
Follow-on offering
Earlier in the year The Trade Desk launched a follow-on offering where five million Class A shares were offered by particular selling stockholders. While the company was not to get anything from the offering, the selling stockholders were expected to allow the underwriters an option to acquire an extra 750,000 Class A shares. The offering’s joint book-running managers were RBC Capital Markets, Jefferies and Citigroup while the co-managers were Raymond James and Needham & Company.
2017 Q1 results
Securing of the credit facility comes just as The Trade Desk prepares to release its first quarterly results in 2017. The results will be released after the market closes on May 11. A conference call and a webcast will be held to discuss the results. One of the revenue sources of The Trade Desk, which operates offices not only in the United States but in Asia and Europe as well, is a platform that is based on the cloud which lets buyers of advertising to create and manage as well as optimize digital ad campaigns.