QuinStreet cuts revolver availability in half to $50 million

By Toni Weeks

San Luis Obispo, Calif., July 22 – QuinStreet, Inc. amended its second loan agreement with Comerica Bank as administrative agent to, among other things, amend the financial covenants and reduce the availability to $50 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings accrue interest initially at Libor plus 237.5 basis points under the revolver and Libor plus 275 bps under the term loan. There is also a 37.5 bps revolving credit facility fee and 237.5 bps letter-of-credit fee.

The new terms, which are effective June 30, provide greater flexibility for the company to invest in strategic initiatives, the filing said.

With the amendment, the company must maintain as of the end of each fiscal quarter a fixed-charge coverage ratio of not less than 1.00:1.00 through June 30, 2016 and 1.15:1.00 thereafter. Additionally it must maintain as of the end of each fiscal quarter EBITDA of not less than $3.4 million from July 1 through Sept. 30 and of $3.2 million from Oct. 1 through Dec. 31.

The company must also maintain as of the end of each month liquidity of not less than $20 million.

The revolver remains undrawn, the filing noted.

The online marketing company is based in Foster City, Calif.

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