TiVo Corp has entered into a new $715 million (€649.5m) 5-year loan facility which it will largely use to repay loans under its existing term loan B facility and add cash to the balance sheet in anticipation of the spin-off of its Product business.
TiVo says it intends to pay-off the remaining balance of its exiting 2020 Convertible Senior Notes when they mature with cash on hand, and a $60 million new Revolving Loan Credit Agreement provides additional flexibility to facilitate the separation of the two businesses.
TiVo is splitting its business into two, one portion of which will focus on exploiting its IP and patents pool, the remaining portion will handle its set-top box products and distribution.
“This is significant progress for TiVo as we prepare for a separation of our IP Licensing and Product businesses. Getting the right capital structure in place for both businesses was a critical factor to the separation, and the agreement we are announcing today is a major milestone towards TiVo becoming two independent businesses,” commented Dave Shull, TiVo president/CEO.
“We are also reaffirming the 2019 Full Year Outlook provided on our last quarterly earnings call on November 7, 2019 as the terms of the new Term Loan Credit Agreement were contemplated in providing such estimates. TiVo remains actively involved in strategic discussions, while also preparing for a separation into two independent companies by April of 2020.”