TiVo said it still plans to spin-off its products business after it agreed a $715 million five-year loan deal from HPS Investment Partners.
The company has also secured a $60M revolving loan credit agreement with Morgan Stanley and Wells Fargo Bank.
TiVo said it plans to use the funding to repay loans under its existing term loan B facility and add cash to the balance sheet in anticipation of the spin-off of its product business. The company said the additional revolving loan credit agreement provides additional flexibility to facilitate the separation of the two businesses, first touted in May.
“This is significant progress for TiVo as we prepare for a separation of our IP Licensing and Product businesses,” said Dave Shull, president and CEO of TiVo.
“Getting the right capital structure in place for both businesses was a critical factor to the separation, and the agreement we are announcing today is a major milestone towards TiVo becoming two independent businesses.
“TiVo remains actively involved in strategic discussions, while also preparing for a separation into two independent companies by April of 2020.”