Rocket Fuel extends revolving credit maturity, amends interest rate

By Angela McDaniels

Tacoma, Wash., Feb. 21 – Rocket Fuel Inc. amended its revolving credit and term loan agreement on Feb. 14 to extend the revolving credit maturity date by one year to Dec. 31, 2018 and to amend the revolver’s interest rate, according to an 8-K filing with the Securities and Exchange Commission.

Following the amendment, the interest rate for the revolver is Libor plus a margin that ranges from 300 basis points to 350 bps.

The amendment also changed the definition of EBITDA to permit the addback of restructuring charges incurred during the first two quarters of fiscal year 2017, amended the minimum EBITDA financial covenant, increased the minimum liquidity ratio financial covenant, decreased the limit for debt under capital leases in the debt covenant, reduced the amount of permitted capital expenditures per fiscal year and eliminated the ability to carry forward unutilized amounts to the next fiscal year.

Comerica Bank is the administrative agent.

Rocket Fuel is a predictive marketing software company based in Redwood City, Calif.

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