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Digital Media Solutions, Inc. Reaches Agreement to Transition Ownership to Existing Lenders, Positioning Business for Continued Innovation and Growth (9/12/24)
Enters Asset Purchase Agreement with Existing Lenders
Commences Voluntary Chapter 11 Cases to Facilitate Efficient Sale; Expects to Complete Process in the Fourth Quarter of 2024
Secures Commitment of Approximately $122 Million in Debtor-in-Possession Financing
Continues to Serve Customers as Usual with Leading Technology-Enabled Digital Performance Advertising Solutions
CLEARWATER, Fla., Sept. 11, 2024 (GLOBE NEWSWIRE) -- Digital Media Solutions, Inc., (“DMS” or the “Company”), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, today announced it has entered into an asset purchase agreement (the “APA”) with existing lenders (the “Lenders”), including a consortium of leading financial institutions. In addition, the Company has secured an approximately $122 million financing commitment from certain of the Lenders to facilitate voluntary Chapter 11 proceedings and execute a court-supervised sale process designed to maximize value, strengthen the business’s financial foundation and position DMS for continued growth.
“DMS has a strong foundation and serves our expansive blue-chip client base across the insurance, e-commerce, education, home services and non-profit sectors through our differentiated performance marketing solutions,” said Joe Marinucci, Co-Founder and CEO of DMS. “The steps we are taking are the result of the strategic review that the DMS Board of Directors initiated in April. We are now moving forward with the support of highly sophisticated investors, and we believe their commitments for new financing and the APA underscore their conviction in our business and the future of DMS. We are continuing our growth trajectory and are confident we will be an even stronger partner for our clients and vendors.”
Mr. Marinucci continued, “We expect this to be an orderly and efficient process and, as we move through it, we remain committed to connecting advertisers with high-intent consumers. We appreciate the continued support of our customers, vendors and financial stakeholders. We also thank our employees for their continued hard work and dedication to innovating and serving our clients.”
To facilitate the sale process, DMS today commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The Company’s ClickDealer subsidiaries are not part of the Chapter 11 proceedings, but they are included in the proposed sale to the Lenders. DMS is operating in the ordinary course across its businesses, including its ClickDealer subsidiaries, and continuing to provide innovative solutions, vertical expertise and outstanding support to its clients and vendors.
The Chapter 11 Proceedings
The court-supervised sale process will be conducted pursuant to section 363 of the U.S. Bankruptcy Code. Accordingly, the proposed transaction with the Lenders is subject to higher or otherwise better offers, Court approval and other customary conditions.
In connection with the Chapter 11 proceedings, DMS has received a commitment for approximately $122 million in debtor-in-possession (“DIP”) financing from certain of its existing lenders, comprising $30 million in new money commitments and approximately $92 million in a “roll-up” of pre-petition funded debt. Upon approval from the Court, the DIP financing, coupled with cash generated from the Company’s ongoing operations, is expected to support the business throughout the court-supervised sale process.
The Company has filed a number of customary motions seeking Court authorization to continue to support its business operations during the court-supervised sale process, including authority to continue payment of employee and contractor wages and benefits. The Company expects to receive Court approval for these requests and, accordingly, anticipates continuing its ordinary course operations. The Company also intends to pay vendors and suppliers in full under normal terms for services contracted for on or after the filing date.
Additional Information
Additional information is available at AdvancingDMS.com. Court filings and other information related to the sale process are available on a separate website administered by the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/DMS; by calling Omni representatives toll-free at (866) 680-8083, or (818) 574-6886 for calls originating outside of the U.S. or Canada; or by emailing DMSInquiries@OmniAgnt.com.
https://www.globenewswire.com/news-release/2024/09/12/2944913/0/en/Digital-Media-Solutions-Inc-Reaches-Agreement-to-Transition-Ownership-to-Existing-Lenders-Positioning-Business-for-Continued-Innovation-and-Growth.html
Advisors
Kirkland & Ellis LLP and Porter Hedges LLP are serving as legal counsel to DMS, Portage Point Partners is serving as restructuring advisor and Houlihan Lokey Capital, Inc. is serving as investment banker.
About DMS
Digital Media Solutions, Inc. (DMS) drives better business results by connecting high-intent consumers with advertisers across our core verticals: Insurance (auto, home, health), Education and Consumer/E-Commerce. Our innovative solutions help consumers shop and save, while helping our advertisers achieve above average return on ad spend. Learn more at https://digitalmediasolutions.com.
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