New Coverage: Thryv Holdings Term Loan Covenants Analysis
Tue Mar 16, 2021 7:55 pm Covenants Analysis

With a focus on SaaS solutions, Thryv Holdings is a small business platform that acts as a predecessor to Dex Media, which declared bankruptcy in 2016. The company went public in October 2020 and now operates through two segments, its legacy marketing segment and its SaaS segment. During an earnings call from Q3 2020, billionaire hedge fund manager, John Paulson, asked about the possibility for Thryv to split and spin off of their higher growth SaaS business in which Thryv’s management responded “…perhaps we should do it sooner than we were thinking…” However, the Thryv Holdings term loan facility was refinanced on March 1, 2021 and the restrictions under the new term loan may create some issues in the plan to spin off the company’s SaaS segment.

Under debt documents and average circumstances, in order to spin off a business, they must be able to dispose of the segment and have sufficient restricted payment capacity to distribute the segment to its shareholders. The Thryv term loan does not directly permit dividends and distributions making it difficult to spin off its SaaS business segment without an amendment or waiver. Our Americas Covenants by Reorg team discussed the flexibility under the Thryv term loan regarding their general limitations, negative covenant capacities, financial maintenance covenant and their amendments and term loan buybacks. Read the full story here:

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