Stingray Scores $353 Million Revolving Credit Facility, Eyes Additional Acquisitions As U.S. Revenue Spikes
Montreal, Québec, Canada, where Stingray is headquartered. Photo Credit: Fenil Patel
Stingray has scored a roughly $353 million (CA$500 million) revolving credit facility and doubled down on plans to continue closing acquisitions.
Montreal-headquartered Stingray Group (trading as RAY.A on the Toronto Stock Exchange) just recently disclosed the bolstered credit facility, which was previously $297 million/CA$420 million and is now set to mature in 2028.
On top of securing a $56 million/CA$80 million increase, Stingray has the option of pursuing “incremental commitments” totaling another $71 million/CA$100 million, for $423 million/CA$600 million overall, according to the Qello Concerts and Stingray Music parent.
Put up by multiple banks and led by the National Bank of Canada, the credit line is expected to provide “additional liquidity for operations and M&A activities,” relayed Stingray, which is said to operate north of 100 radio stations.
Meanwhile, longtime Stingray head Eric Boyko, whose company scooped up music-documentary and concert-film platform The Coda Collection over the summer, underscored these continued buyout ambitions in a statement.
“We are delighted to have the ongoing support from our current banking syndicate and partners as we explore growth opportunities,” weighed in Boyko.
“This new financing greatly enhances our current liquidity and provides optionality for additional commitments as we continue to evaluate and capitalize on market opportunities,” concluded the exec, whose business brought its namesake karaoke app to Vizio smart TVs in October.
Though only time will tell exactly which market opportunities Stingray has in mind, it’s worth noting that the company posted an approximately 53% year-over-year spike in U.S. revenue (to about $23.2 million total, factoring once again at the current USD-CAD exchange rate) for calendar Q3 2024.
“The increase was primarily due to an increase in FAST channel revenues and to an increase in equipment and installation sales related to digital signage,” relayed Stingray, which chalked up about 35% of its total third-quarter revenue to operations in the States.
(Despite accounting for over half of Stingray’s revenue, the Canadian market’s contribution has been hovering around the same level for several quarters running, the newest earnings report shows.)
Notwithstanding the considerable amount of music content available through on-demand video services, YouTube, and others, Stingray isn’t alone in looking to capitalize on free ad-supported streaming offerings.
To name one recent example, Lionsgate and 50 Cent in August announced a FAST channel partnership; the Roku exclusive, aptly called the 50 Cent Action Channel, formally launched today.