Blucora, Inc., a provider of technology-enabled financial solutions to consumers, small businesses and tax professionals, announced that it has closed a new credit facility that includes significantly improved terms and extended maturity dates relative to its previous term loan facility. 

The new $425 million credit facility consists of a $375 million senior secured term loan and a $50 million revolving credit facility that will mature in 2024 and 2022, respectively. The pricing of the term loan will be LIBOR plus 3.75%, 225 basis points less than the rate applicable to the Company's previous term debt.          

Initial funding from the new term loan will be used to repay the TaxAct - HD Vest 2015 credit facility, redeem Blucora's convertible senior notes outstanding on June 5, 2017, and pay related fees and expenses associated with the new credit facility.  Remaining proceeds, if any, may also be used for general corporate purposes.

"This new credit facility will simplify our capital structure, extend the tenor of our borrowings and is expected to reduce cash interest expense by approximately $3.4 million annually," said Eric Emans, Blucora's Chief Financial Officer. "This transaction represents a continuation of the work we have done over the past 17 months to significantly reduce our net leverage and strengthen Blucora's capital structure, while focusing on organic execution."

Credit Suisse served as lead arranger and is acting as administrative agent for the facility. Additionally, Key Bank National Association and SunTrust Robinson Humphrey, Inc. served as joint lead arrangers and joint bookrunners for the syndicate.