Direct Digital Holdings Announces Successful Extension To Existing Non-Dilutive Debt Facility
HOUSTON , Aug. 3, 2022 /PRNewswire/ -- Direct Digital Holdings, Inc. (Nasdaq: DRCT) ("Direct Digital" or the "Company"), a leading advertising and marketing technology platform and owner of operating companies Colossus Media, LLC, Huddled Masses LLC and Orange142, LLC, today announced the successful completion of an extension to its existing debt facility.
Direct Digital upsized its existing funded credit facility with Lafayette Square, a commercially scaled investment platform. The facility now totals $26 million, and the Company intends to deploy the additional capital to simplify and solidify its balance sheet and complete the final payment owed to a former owner, USDM Holdings, Inc., which will result in a lower blended cost of capital and increased cashflow to the Company.
Mark Walker, Chairman and Chief Executive Officer of Direct Digital, commented, "We are pleased to enhance our financial flexibility utilizing our existing debt agreement with Lafayette Square. Lafayette Square has been a committed, collaborative partner and has provided us with access to supportive non-dilutive capital as we continue to grow our business and optimize our capital structure."
Damien Dwin, Founder and Chief Executive Officer of Lafayette Square, commented, "Lafayette Square is pleased to partner with Direct Digital, fuel its growth and identify ways to support the wellbeing of its employees. We support Direct Digital's innovative approach to enact meaningful change benefitting historically marginalized communities across the advertising landscape."
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About Direct Digital Holdings
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SOURCE Direct Digital Holdings
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