TRKA - Troika Media stock climbs on $75M credit facility to fund Converge Direct acquisition

Troika Media (NASDAQ:TRKA) stock climbed 8% after the firm said it signed a $75M firm commitment for a senior secured credit facility with a direct lender to fund the acquisition of Converge Direct and its affiliates. TRKA will fund the acquisition using net proceeds from the credit facility, together with cash on hand at closing, and will issue $25M in the company's restricted stock valued at $2/share. The restricted stock being paid to Converge shareholders is subject to a 9-month lock-up agreement. Post closing, TRKA expects to have a combined adj. EBITDA of over $27M for calendar year 2022. Upon closing, Sid Toama, COO of Converge, will join TRKA's board and serve as president of Troika. Tom Marianacci, founder and CEO of Converge, will remain CEO of the Converge entities and be a board advisor to TRKA. Other members of Converge's leadership also agreed to enter into long term employment deals

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Troika Media stock climbs on $75M credit facility to fund Converge Direct acquisition