CHARLOTTE, N.C. - LendingTree, Inc. (NASDAQ: TREE), a leading online financial services marketplace, has announced a financing agreement for up to $175 million with Apollo affiliates. The company plans to initially draw $125 million from the first lien term loan facility, with the option to access the remaining funds over the next 12 months. This capital will support general corporate activities, potentially including the repayment of existing debt.
Trent Ziegler, CFO of LendingTree, emphasized the importance of this financial move, stating it marks a pivotal moment in the company's growth and balance sheet strengthening. He expressed confidence that this improved financial standing would enable LendingTree to leverage opportunities within its ecosystem.
Apollo Partner Robert Givone expressed satisfaction in providing LendingTree with a financing solution aimed at enhancing the company's financial agility during current market conditions.
LendingTree has established itself as a major player in the online financial marketplace, connecting consumers with competitive offers on loans, credit cards, insurance, and more through a network of about 500 financial partners. The company has been instrumental in assisting millions of customers in securing financing, saving money, and bettering their financial and credit health.
InvestingPro Insights
LendingTree, Inc. (NASDAQ: TREE) has recently secured a significant financing agreement, which is a strategic move that could influence its financial metrics and stock performance. According to InvestingPro data, LendingTree has a market capitalization of $534.49 million and has experienced substantial revenue growth over the last year. Despite a challenging period with a revenue decline of 31.73% in the last twelve months as of Q4 2023, the company's gross profit margin remains high at 94.24%, suggesting strong underlying business efficiency.
Investors should note the high price volatility of LendingTree's stock, as indicated by the InvestingPro Tips. This could be a factor to consider when evaluating the potential risks and rewards associated with the company's shares. Additionally, the company's stock has seen a large price uptick over the last six months, with a 162.06% return, which could signal investor optimism about its future profitability and growth prospects.
For those looking to delve deeper into LendingTree's financial health and stock performance, InvestingPro offers additional insights. There are 13 more InvestingPro Tips available that could help investors make more informed decisions. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to valuable financial analysis and data for LendingTree and other companies.
One key metric to consider is the adjusted P/E ratio, which stands at -16.42, reflecting the market's expectations for the company's earnings. While the company has not been profitable over the last twelve months, analysts predict that LendingTree will turn a profit this year, which could potentially enhance investor confidence. As of the previous close, the stock price was $39.99, with InvestingPro's fair value estimation at $44.49, suggesting potential room for growth.
As LendingTree navigates its financial strategy, including the recent financing agreement with Apollo affiliates, these InvestingPro insights provide a snapshot of the company's current financial standing and market perception, which could be integral to investors' decision-making processes.
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