|9 Months Ended|
Dec. 31, 2020
|Subsequent Events [Abstract]|
|Subsequent Event||Subsequent Event
New Credit Facility
On February 3, 2021, the Company entered into a Credit Agreement with Bank of America, N.A. (the “Bank”), which provides for a revolving line of credit of $100,000, with an accordion feature enabling the Company to increase the amount to up to $200,000, to be used for acquisitions, working capital, and general corporate purposes. Digital Turbine Media, Inc. (“DT Media”) and Digital Turbine USA, Inc. (“DT USA”) are additional co-borrowers under the Credit Agreement.
The revolving line of credit matures on February 3, 2024.
Amounts outstanding under the Credit Agreement accrue interest at an annual rate equal to LIBOR (or, if necessary, a broadly-adopted replacement index) plus an applicable margin which ranges from 1.50% to 2.25%, depending on the Company’s consolidated leverage ratio. The obligations under the Credit Agreement are secured by a grant of a security interest in substantially all of the assets of the Company and its subsidiaries. The Credit Agreement contains customary covenants, representations, and events of default, and also requires the Company to comply with a maximum consolidated leverage ratio and minimum fixed charge coverage ratio.
The description of the Credit Agreement provided herein is qualified by reference to the Credit Agreement, which is attached to this Form 10-Q as Exhibit 10.1 and is incorporated by reference herein.
The Credit Agreement contains representations and warranties by each of the parties to the Credit Agreement, which were made only for the purposes of the Credit Agreement and, in some cases, as of specified dates. The representations, warranties, and covenants in the Credit Agreement were made solely for the benefit of the parties to the Credit Agreement, are subject to limitations agreed upon by such parties (including being qualified by schedules), may have been made for the purposes of allocating contractual risk between the parties instead of establishing these matters as facts, and are subject to standards of materiality applicable to the parties that may differ from those applicable to others. Others should not rely on the representations, warranties, and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties, and covenants may change after the date of the Credit Agreement and such subsequent information may or may not be fully reflected in the Company’s public disclosures.
Termination of Existing Credit Facility
In connection with the Company entering into the Credit Agreement with the Bank as described above, on February 3, 2021, the Company and Western Alliance Bank terminated the Credit Agreement, dated February 28, 2020, by and among the Company, DT Media, DT USA, and Western Alliance Bank (and the amendments thereto), which was the previous term loan and revolving credit facility of the Company.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef