Magnite Stock Is Trading Lower On Raising $412.5M Debt To Finance SpotX Acquisition

Magnite Inc MGNI priced and syndicated a 7-year $360 million senior secured term loan B and a 5-year $52.5 million senior secured revolving credit facility.
The offering proceeds of the Term Loan B and existing $400 million convertible notes due 2026 will be used to pay the cash purchase price of the SpotX acquisition, related transaction fees and expenses, and excess cash for operations.
The convertible note proceeds will help lower SpotX acquisition-related debt financing from Goldman Sachs by $200 million and reduce equity dilution from the SpotX acquisition by 1.6 million shares. The notes carried a conversion premium of 100% following capped call addition.
Magnite held cash and cash equivalent of $117.7 million as of Dec. 31, 2020.
Price action: MGNI shares traded lower by 7.38% at $39.60 on the last check Monday.