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TUCSON, Ariz. - AudioEye, Inc. (NASDAQ: AEYE), a leader in digital accessibility solutions, has entered into a new $20 million loan agreement with Bridge Bank, a division of Western Alliance Bank (NYSE: WAL). The new loan facility includes a $12 million term loan, a $3 million revolving credit, and a $5 million delayed draw term loan, which AudioEye plans to use for potential acquisitions. Western Alliance Bank, with a market capitalization of $8.25 billion, has shown strong revenue growth of 18% over the last twelve months, according to InvestingPro data.
The company, which has previously issued guidance predicting a 42% year-over-year increase in adjusted EBITDA, will use the initial $12 million term loan to repay an existing loan from November 30, 2023. This move is expected to improve AudioEye’s cash position, while the revolver and delayed draw term loan will be available for further strategic initiatives. The lending institution, Western Alliance Bank, maintains a Fair Financial Health Score according to InvestingPro analysis, with a favorable P/E ratio of 10.5 and strong analyst consensus.
According to AudioEye’s CFO, Kelly Georgevich, the new loan facility offers a significantly lower interest rate, approximately 6.5% less than the existing one, and provides added flexibility for strategic opportunities. Francesco Corradino of Bridge Bank expressed confidence in AudioEye’s mission and market opportunity, highlighting the bank’s commitment to supporting high-caliber companies.
AudioEye aims to make digital content accessible to everyone, offering a blend of AI automation and expert solutions. The company serves a broad customer base, including well-known brands such as Samsung, Calvin Klein, and Samsonite. AudioEye’s technology is protected by 24 US patents and includes around-the-clock monitoring, automated issue testing and fixes, and legal protection to help organizations comply with accessibility standards.
Bridge Bank specializes in banking services for technology and innovation companies, offering customized solutions to support businesses from startup to IPO stages and beyond.
The information in this article is based on a press release statement from AudioEye, Inc.
In other recent news, Western Alliance Bancorporation has completed the issuance of a new series of preferred stock. The company sold 300,000 shares of its 9.500% Fixed-Rate Reset Non-Cumulative Exchangeable Perpetual Series B Preferred Stock, with a liquidation preference of $1,000 per share. This financial move is part of the company’s strategy to manage its capital and liquidity. Additionally, Western Alliance Bancorporation has been upgraded by both Moody’s and Fitch Ratings. Moody’s lifted the company’s ratings to Baa3 from Ba1, citing improvements in financial strategy and risk management. Fitch Ratings also upgraded the company’s Long-Term Issuer Default Ratings to ’BBB’ from ’BBB-’, acknowledging improved capital and funding profiles. Furthermore, Western Alliance has declared a quarterly cash dividend of $0.38 per share on its common stock, payable on February 28, 2025. The company will also distribute a quarterly cash dividend for its preferred stock, demonstrating its commitment to delivering value to shareholders. These developments reflect Western Alliance’s ongoing efforts to enhance financial stability and investor confidence.
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