Synchronoss Technologies Inc (NASDAQ:SNCR) has announced a refinancing agreement with TP Birch Grove, securing a new $200 million, four-year term loan that will replace its existing senior notes and term loan facilities.
Synchronoss Technologies CFO Lou Ferraro said the new term loan adds to the financial stability of the company.
“This refinancing significantly improves our capital structure, which in turn provides Synchronoss with the ability to further invest in our Personal Cloud solution as well as provide greater operational flexibility moving forward,” Ferraro said.
“Considering the volatility surrounding the financial markets at this time, we’re pleased to provide shareholders with an additional level of certainty in our operations.”
The Bridgewater, New Jersey–based company, known for its personal cloud platform solutions, will use the proceeds to fully repay the remaining balances on its $75 million term loan and $121 million in senior notes.
An additional $8 million from the company’s balance sheet will cover associated fees, call protections, and accrued interest to complete the transaction.
The new loan, which matures in April 2029, carries an interest rate set at the SOFR benchmark plus 7%. That rate could be reduced by half a percentage point if the company hits certain financial targets.