Adeia Inc. announced the successful repricing of its Term Loan B, marking its second such repricing in the past eight months. This action reduces the applicable fixed interest rate by 50 basis points on the remaining balance of approximately $487.1 million. The new interest rate is set at SOFR + 250 basis points, with no change to the original June 2028 maturity date.
The company estimates that this repricing will reduce its annual cash interest expense by approximately $2.4 million. Keith A. Jones, Adeia's chief financial officer, stated that strengthening the balance sheet and lowering interest expense through accelerated debt repayments has been a top priority. Since operating as an independent company in October 2022, Adeia has paid down $272.3 million on its Term Loan B.
This financial maneuver leverages favorable market conditions and Adeia's cash-generative business model to improve its cost structure. The reduction in annual interest costs enhances the company's financial efficiency and supports its disciplined capital allocation strategy.
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