Digital Media Solutions announced that its operating subsidiary, Digital Media Solutions has entered into a new $275 million five-year senior secured credit facility, which consists of term loans in an aggregate principal amount of $225 million and a $50 million revolving credit facility. Truist Securities and Fifth Third Bank acted as Joint Lead Arrangers and Joint Bookrunners for the financing. Truist Bank also serves as the Administrative Agent, Collateral Agent, a Lender and an Issuing Bank.

Proceeds from the term loans were used to repay and terminate the previous $220 million senior secured credit facility, which consisted of term loans in an aggregate principal amount of $205 million and a $15 million revolving credit facility. At closing, the new revolver was undrawn.

In conjunction with the $275 million refinancing transaction, S&P Global Ratings assigned a ‘B’ Issuer Credit Rating and Moody’s Investors Service assigned a ‘B2’ Corporate Family Rating to Digital Media Solutions, LLC.

The new credit facility provides increased borrowing capacity, a new five-year tenor and lower amortization, along with greater strategic and operational flexibility. The revolving facility can be used to finance working capital needs, permitted acquisitions and investment, capital expenditures, and general corporate purposes.

“This new credit facility, with its increased capacity and extended maturity, is another important step in the financial transformation of Digital Media Solutions,” said Joe Marinucci, Digital Media Solutions Chief Executive Officer. “It provides us with increased financial flexibility to support our key growth initiatives.”

The new credit facility is governed by a maximum net leverage covenant of 5.00x, with a step down to 4.50x over time.