Quotient Completes $105 Million Non-Dilutive Debt Financing

Rhea-AI Summary

Quotient Technology Inc. (NYSE: QUOT) has successfully completed a $105 million non-dilutive debt financing. This includes a $50 million senior secured asset-based revolving credit facility from PNC Bank and $55 million in senior secured term loans from Blue Torch Capital. The funds were allocated to retire maturing convertible note obligations. CFO Yuneeb Khan highlighted that this move significantly enhances the company's capital structure and cash position without burdening the profit and loss statement. Quotient currently has no long-term debt outstanding.

Positive

• Completed $105 million non-dilutive debt financing.
• Enhanced capital structure by fully retiring convertible note obligations.
• No outstanding long-term debt, improving financial stability.
• Financing does not dilute shareholder equity.

Negative

• None.

SALT LAKE CITY--(BUSINESS WIRE)-- Quotient Technology Inc. (NYSE: QUOT) (“Quotient” or the “Company”), a leading digital promotions and media technology company, today announced today that it has completed its previously announced $105 million non-dilutive debt financing. On November 30, 2022, Quotient entered into a Financing Agreement with PNC Bank, N.A. (“PNC”), with a senior secured asset-based revolving credit facility in an aggregate principal amount of $50 million. Quotient also entered into a Financing Agreement Blue Torch Capital LP, with senior secured term loans in an aggregate principal amount of $55 million. The proceeds of the term loans were used to help retire the maturing convertible note obligations, which were repaid in full on December 1, 2022. Houlihan Lokey served as Quotient’s financial advisor.

“The retirement of the convertible note obligations significantly improves our capital structure and marks an important milestone in our transformation journey,” said Yuneeb Khan, Chief Financial Officer. “Further, it provides us with an optimized cash position, does not overburden our P&L and cash flow, and protects shareholder value. We believe this new structure better positions Quotient to capitalize on the evolving programmatic media landscape.”

Quotient notes that it has no other outstanding long-term debt. The agreed-upon financing does not include any equity or equity-linked component and is therefore non-dilutive to shareholders. Additional details regarding the financing facilities will be available in the Company’s Form 8-K to be filed with the U.S. Securities and Exchange Commission.

About Quotient Technology Inc.

Quotient Technology (NYSE: QUOT) is a leading digital promotions and media technology company for advertisers, retailers and consumers. Quotient's omnichannel platform is powered by exclusive consumer spending data, location intelligence and purchase intent data to reach millions of shoppers daily and deliver measurable, incremental sales.

Quotient partners with leading advertisers, publishers and retailers, including Clorox, Procter & Gamble, General Mills, Unilever, CVS, Dollar General, Peapod Digital Labs, a company of Ahold Delhaize USA, Amazon and Microsoft. Quotient is headquartered in Salt Lake City, Utah, and has offices across the US as well as in Bangalore, Paris, London and Tel Aviv. For more information visit www.quotient.com.

Quotient and the Quotient logo are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ significantly from expectations due to various risks and uncertainties including, but not limited to, the factors described in the Risk Factors section of Quotient’s most recently filed Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 1, 2022, as amended on April 29, 2022, and as from time to time updated in Quotient’s Quarterly Reports on Form 10-Q. These documents are available in the “SEC Filings” section of Quotient’s Investor Relations website at https://investors.quotient.com. You are cautioned not to place undue reliance on Quotient’s forward-looking statements, which speak only as of the date of this communication. Except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events, new information or circumstances occurring after the date of this communication.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221206005256/en/

Investor Relations: IR@quotient.com

Source: Quotient Technology Inc.

FAQ

What is the significance of Quotient Technology's $105 million debt financing?

The $105 million debt financing allows Quotient Technology to improve its capital structure and retire convertible note obligations without diluting shareholder equity.

When did Quotient Technology retire its convertible note obligations?

Quotient Technology fully repaid its convertible note obligations on December 1, 2022.

Which banks were involved in Quotient Technology's recent financing agreements?

Quotient Technology entered financing agreements with PNC Bank for a $50 million credit facility and Blue Torch Capital for $55 million in term loans.

How does the new financing affect Quotient Technology's shareholders?

The financing is non-dilutive, meaning it will not negatively impact shareholder equity or valuations.

Does Quotient Technology have any long-term debt after this financing?

No, Quotient Technology has no other outstanding long-term debt following the financing.