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Root, Inc. reports Q3 (Sep) results, beats on revs
- Reports Q3 (Sep) earnings of $1.35 per share, may not be comparable to the FactSet Consensus of ($0.93); revenues rose 165.1% year/year to $305.7 mln vs the $272.77 mln FactSet Consensus.
Root, Inc. announces the successful refinancing of its term loan facility with funds and accounts managed by BlackRock Capital Investment Advisors, LLC and its affiliates
- These improved terms in the long-standing relationship enhance Root's financial flexibility and significantly improve its cost of capital.
- The amended facility consists of a six-year term loan with a principal amount of $200 mln, reducing the previous facility by $100 mln. The amended facility, effective on October 29th, will carry an interest rate of 3-month term SOFR plus 600 basis points with performance-based step-downs, reflecting a reduction of at least 300 basis points from the prior term loan. Root maintains $150 million of available capital, net of financial covenants under the amended facility, consistent with the prior facility.
- At current interest rates, the amended loan will reduce Root's interest expense by approximately 50% on a run-rate basis, further accelerating profitability and enabling increased investments in the company's strategic growth initiatives.
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