Banzai Announces $24.8 Million Debt Payoff and Restructuring Agreements with Participation from Company Insiders
Banzai International, Inc. (NASDAQ: BNZI) has announced significant debt payoff and restructuring agreements, totaling $28.8 million in reduced and restructured liabilities. This includes:
- Write-off of up to $5.6 million in outstanding liabilities
- Restructuring of $19.2 million in existing debt obligations
- Previously executed Cantor Fitzgerald fee restructuring
The agreements involve eliminating approximately $15.3 million of debt through a combination of private placement and debt restructuring, with participation from insiders including Alco Investment Company. A term loan with CB BF Lending is being converted to a fixed-price convertible with a maturity date extended to February 19, 2027. These actions aim to improve Banzai's balance sheet, reduce total debt, defer principal and interest payments, and lower near-term cash needs.
Banzai International, Inc. (NASDAQ: BNZI) ha annunciato significativi accordi di estinzione e ristrutturazione del debito, per un totale di 28,8 milioni di dollari in passività ridotte e ristrutturate. Questo include:
- Una cancellazione di fino a 5,6 milioni di dollari in passività fuori corso
- Ristrutturazione di 19,2 milioni di dollari in obbligazioni di debito esistenti
- Ristrutturazione delle spese di Cantor Fitzgerald già eseguita
Gli accordi prevedono l'eliminazione di circa 15,3 milioni di dollari di debito attraverso una combinazione di collocamento privato e ristrutturazione del debito, con la partecipazione di insider tra cui Alco Investment Company. Un prestito a termine con CB BF Lending viene convertito in un’obbligazione convertibile a prezzo fisso con scadenza prorogata al 19 febbraio 2027. Queste azioni mirano a migliorare il bilancio di Banzai, ridurre il debito totale, rinviare i pagamenti di capitale e interessi, e abbattere le esigenze di liquidità a breve termine.
Banzai International, Inc. (NASDAQ: BNZI) ha anunciado importantes acuerdos de pago de deudas y reestructuración, que totalizan 28,8 millones de dólares en pasivos reducidos y reestructurados. Esto incluye:
- Cancelación de hasta 5,6 millones de dólares en pasivos pendientes
- Reestructuración de 19,2 millones de dólares en obligaciones de deuda existentes
- Reestructuración de tarifas de Cantor Fitzgerald previamente ejecutada
Los acuerdos implican la eliminación de aproximadamente 15,3 millones de dólares de deuda a través de una combinación de colocaciones privadas y reestructuración de deudas, con participación de insiders como Alco Investment Company. Un préstamo a plazo con CB BF Lending se está convirtiendo en un convertible a precio fijo con fecha de vencimiento extendida al 19 de febrero de 2027. Estas acciones buscan mejorar el balance de Banzai, reducir la deuda total, aplazar los pagos de capital e intereses, y disminuir las necesidades de efectivo a corto plazo.
반자이 인터내셔널 주식회사(NASDAQ: BNZI)는 2880만 달러의 부채 상환 및 재구성 계약을 발표했습니다. 이는 감소 및 재구성된 부채를 포함합니다:
- 최대 560만 달러의 미결제 부채 탕감
- 현재의 부채 1920만 달러 재구성
- 지난번 캔토르 피츠제럴드 수수료 재구성 실행
이번 계약은 약 1530만 달러의 부채를 없애는 것을 포함하고 있으며, 내부 관계자가 참여하는 사모 배치 및 부채 재구성을 통해 이루어집니다. CB BF Lending과의 기간 대출이 고정 가격 전환 채권으로 전환되며 만기일이 2027년 2월 19일로 연장됩니다. 이러한 조치는 반자이의 재무 상태를 개선하고 총 부채를 줄이며 원금 및 이자 지급을 연기하고 단기 현금 수요를 낮추는 것을 목표로 하고 있습니다.
Banzai International, Inc. (NASDAQ: BNZI) a annoncé d'importants accords de remboursement de dettes et de restructuration, totalisant 28,8 millions de dollars en passifs réduits et restructurés. Cela comprend:
- Effacement de jusqu'à 5,6 millions de dollars de dettes impayées
- Restructuration de 19,2 millions de dollars d'obligations de dette existantes
- Restructuration des frais de Cantor Fitzgerald déjà exécutée
Les accords impliquent l'élimination d'environ 15,3 millions de dollars de dettes grâce à une combinaison de placement privé et de restructuration de la dette, avec la participation d'insiders tels qu'Alco Investment Company. Un prêt à terme avec CB BF Lending est en cours de conversion en un convertible à prix fixe avec une date d'échéance prolongée au 19 février 2027. Ces actions visent à améliorer le bilan de Banzai, réduire la dette totale, différer les paiements de capital et d'intérêts, et alléger les besoins de liquidité à court terme.
Banzai International, Inc. (NASDAQ: BNZI) hat bedeutende Schuldenabbau- und Umstrukturierungsvereinbarungen angekündigt, die insgesamt 28,8 Millionen Dollar an reduzierten und umstrukturierten Verbindlichkeiten umfassen. Dazu gehört:
- Streichung von bis zu 5,6 Millionen Dollar an ausstehenden Verbindlichkeiten
- Umstrukturierung von 19,2 Millionen Dollar an bestehenden Schuldverpflichtungen
- Bereits durchgeführte Umstrukturierung der Gebühren von Cantor Fitzgerald
Die Vereinbarungen beinhalten die Eliminierung von etwa 15,3 Millionen Dollar Schulden durch eine Kombination aus privater Platzierung und Schuldenumstrukturierung, mit der Beteiligung von Insidern, einschließlich der Alco Investment Company. Ein Terminkredit bei CB BF Lending wird in ein festverzinsliches wandelbares Darlehen umgewandelt, dessen Fälligkeit auf den 19. Februar 2027 verlängert wird. Diese Maßnahmen zielen darauf ab, die Bilanz von Banzai zu verbessern, die Gesamtschulden zu reduzieren, die Rückzahlungen von Kapital und Zinsen zu verschieben und den kurzfristigen Liquiditätsbedarf zu senken.
- Elimination of approximately $15.3 million of debt
- Extension of debt maturity to February 19, 2027
- Improved cash runway and working capital
- Reduced near-term cash needs
- Increased financial flexibility for growth initiatives
- Significant existing debt burden requiring restructuring
- Potential dilution from debt conversion to fixed-price convertible
Insights
This debt restructuring agreement is a significant positive development for Banzai. The company is addressing its financial challenges head-on by reducing total debt by
Key points to consider:
- Debt write-off of up to
$5.6 million in outstanding liabilities - Conversion of a term loan to a fixed-price convertible with extended maturity
- Participation from company insiders, including Alco Investment Company, signaling confidence in Banzai's future
- Two-year extension on
$15.3 million of debt, pushing maturity to February 2027
This restructuring significantly reduces near-term cash needs, providing Banzai with increased financial flexibility to pursue growth initiatives. The involvement of insiders in the private placement is a positive sign, aligning management's interests with those of shareholders. However, investors should monitor the impact of any potential dilution from the convertible debt.
Banzai's debt restructuring comes at a important time for the marketing technology sector. The industry is experiencing rapid changes due to evolving privacy regulations and the shift towards first-party data. This financial maneuver positions Banzai to capitalize on these trends by:
- Freeing up capital for potential investment in product development
- Enabling the company to focus on building its "data-driven platform with essential marketing technology solutions"
- Potentially improving its competitive position against larger, more established players
The extended cash runway could allow Banzai to weather any short-term market volatility while pursuing its long-term strategy. Investors should watch for subsequent announcements on how the company plans to utilize this improved financial flexibility to drive growth and market share in the competitive martech landscape. The success of this restructuring could make Banzai a more attractive player in the sector, potentially leading to increased investor interest and strategic partnerships.
Agreements to Significantly Improve Balance Sheet by Reducing Total Debt, Deferring Principal and Interest Payments, and Substantially Lowering Near-Term Cash Needs
SEATTLE, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading marketing technology company that provides essential marketing and sales solutions, today announced that it entered into agreements with lenders and service providers to write off up to
Banzai has reached an agreement with creditors to eliminate approximately
As part of the debt restructuring, a term loan with CB BF Lending is being converted to a fixed-price convertible with a maturity date extended to February 19, 2027, a two-year extension. This substantially increases the cash runway and improves working capital; we believe it will also enable the Company to achieve its near-term growth initiatives.
“These agreements are delivering on our commitments and taking meaningful steps to significantly reduce our debt burden and strengthen Banzai’s financial position,” said Joe Davy, CEO of Banzai. “I am confident that this restructure will provide the financial flexibility needed to significantly improve the company's balance sheet, allowing us to continue executing our strategy to build a data-driven platform with essential marketing technology solutions that integrate seamlessly.
“We are committed to making progress in improving liquidity and strengthening our capital structure to position us for long-term success. We appreciate the support of our lenders and stakeholders who have demonstrated their belief in the Company’s strategy and future,” concluded Davy.
About Banzai
Banzai is a marketing technology company that provides essential marketing and sales solutions for businesses of all sizes. On a mission to help their customers achieve their mission, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai customers include Square, Hewlett Packard Enterprise, Thermo Fisher Scientific, Thinkific, Doodle and ActiveCampaign, among thousands of others. Learn more at www.banzai.io. For investors, please visit https://ir.banzai.io.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.
Investor Relations:
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
BNZI@mzgroup.us
www.mzgroup.us
Media
Rachel Meyrowitz
Director, Demand Generation, Banzai
rachel.meyrowitz@banzai.io
FAQ
What is the total amount of reduced and restructured liabilities for Banzai (BNZI)?
How much debt is Banzai (BNZI) eliminating through private placement and debt restructuring?
What changes were made to Banzai's (BNZI) term loan with CB BF Lending?
How will these debt restructuring agreements benefit Banzai (BNZI)?
