Cerence refinances with new $125 million term A credit facility

By Sarah Lizee

Olympia, Wash., June 15 – Cerence Inc. completed the refinancing of its senior secured term loan B and revolving credit facility using proceeds of a new $125 million senior secured term loan A credit facility, according to a press release.

The term loan A credit facility includes a term loan of $125 million and a $50 million revolver, each accruing interest at a rate of Libor plus a spread that ranges from 250 basis points to 350 bps, resulting in a current interest rate of 350 bps compared to the term loan B credit facility current interest rate of 700 bps.

The $125 million term loan A credit facility was closed on Friday.

Proceeds from the recent sale of $175 million 3% convertible senior notes due 2025 completed on May 29 were also used for the refinancing.

Cerence is a Burlington, Mass.-based voice recognition technology company serving the automotive industry.

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