AppLovin Announces Pricing of New $1.5 Billion Term Loan

Rhea-AI Summary

AppLovin Corporation (NASDAQ: APP) has successfully closed a new $1.5 billion term loan, which will be utilized for general corporate purposes, including potential acquisitions. The loan carries an interest rate of LIBOR plus 3.00% with a 0.50% LIBOR floor. Major financial institutions including JPMorgan Chase Bank, BofA Securities, and Goldman Sachs acted as joint lead arrangers for the loan. The company aims to leverage these funds to enhance its business growth and expand its market reach.

Positive

• Successfully closed a $1.5 billion term loan, which can support growth initiatives.
• The loan's interest rate is manageable at LIBOR plus 3.00% with a 0.50% LIBOR floor.
• Funds will be used for general corporate purposes, including potential acquisitions, indicating strategic growth plans.

Negative

• None.

PALO ALTO, Calif.--(BUSINESS WIRE)-- AppLovin Corporation (NASDAQ: APP), a leading marketing software company, today announced the closing of a new, seven year, $1.5 billion term loan. The term loan was issued at 99.75% of the aggregate principal amount and will bear interest at a rate of LIBOR plus 3.00% with a 0.50% LIBOR floor. As previously discussed, the Company intends to use the net proceeds for general corporate purposes, including but not limited to acquisitions.

JPMorgan Chase Bank, N.A (JPM), BofA Securities, Inc. (BAS), KKR Capital Markets LLC (KCM), Citigroup, N.A. (Citi), Credit Suisse Loan Funding LLC (CS), Goldman Sachs Bank USA (GS), Morgan Stanley Senior Funding, Inc. (MSSF), and UBS Securities LLC (UBSS) acted as joint lead arrangers (collectively, including any of the foregoing in their capacity as Joint Lead Bookrunners, each as a “Lead Arranger”).

JPM, BAS, KCM, Citi, GS and MSSF also acted as joint bookrunners collectively, in such capacity, the “Joint Lead Bookrunners”.

About AppLovin

AppLovin’s leading marketing software provides developers with a powerful, integrated set of solutions to grow their businesses. AppLovin enables developers to market, monetize, analyze and publish their apps. The company’s first party content includes over 200+ popular, engaging apps and its technology brings that content to millions of users around the world. AppLovin is headquartered in Palo Alto, California with several offices globally.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future performance. In some cases, you can identify forward-looking statements because they contain words such as “will,” “expect,” “plan,” “going to,” “intend,” “aim,” “target,” “project,” “believe,” “estimate,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s new term loan and our intended use of proceeds. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, that could cause actual results to differ materially from those projected. These risks include our inability to complete the transaction, our ability to obtain acceptable terms and market conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Source: AppLovin Corp.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026005522/en/

Investors

Ryan Gee

ir@applovin.com

Press

Kim Hughes

press@applovin.com

Source: AppLovin Corp.

FAQ

What is the amount of the new term loan closed by AppLovin?

AppLovin closed a new term loan amounting to $1.5 billion.

What will AppLovin use the proceeds of the term loan for?

The proceeds will be used for general corporate purposes, including potential acquisitions.

What is the interest rate of AppLovin's new term loan?

The loan bears interest at a rate of LIBOR plus 3.00% with a 0.50% LIBOR floor.

Who are the joint lead arrangers for AppLovin's term loan?

Joint lead arrangers include JPMorgan Chase Bank, BofA Securities, KKR Capital Markets, Citigroup, Credit Suisse, Goldman Sachs, Morgan Stanley, and UBS Securities.