Loan of the Week Snapshot #116

👓At a Glance

Borrower: AudioEye, Inc. and subsidiaries

Lender: Western Alliance Bank (Bridge Bank)

Deal Size: $20.0 million

Structure: Senior secured revolving line of credit and two term loans

Use of Proceeds: Refinance existing term loan from SG Credit Partners

Source: Press Release

📷Borrower Snapshot

Sector: Information Technology

Subsector: Software

Ownership: Public

Commercial Stage: Revenue generating; EBITDA (-) LTM

Business Overview: AudioEye, Inc. (Nasdaq: AEYE) is a leading digital accessibility platform that provides website compliance solutions to businesses of all sizes. Leveraging patented technology and AI-driven tools, AudioEye's SaaS offerings help organizations achieve and maintain substantial conformance with the Web Content Accessibility Guidelines (WCAG), enhancing user experiences for individuals with disabilities. The company primarily generates revenue through subscriptions to its accessibility solutions, serving clients across various industries.​

⚙️Structure & Terms

Source: SEC 8-K

Revolving Line Commitment: $3 million

Maturity: 60 months

Repayment: Principal due at Maturity

Rate: Variable - SOFR + 3.25% (with SOFR floor = 2.30%)

Fee: $7.5k per year

Term Loan A Commitment: $12 million

Availability: Fully drawn at close

Repayment: ~ 12 months interest only through March 31, 2026 followed by 5% annual amortization paid quarterly in each of the subsequent four years (20% scheduled amortization over a four year period)

Excess Cash Flow: Excess cash flow repayment provision based on specified percentages aligned to negotiated leverage ratio thresholds (i.e. 50% when leverage ratio >= 2.50; 25% when leverage ratio <2.5 and >= 2.00; 0% when leverage ratio < 2.00)

Rate: Variable - SOFR + 3.25% (with SOFR floor = 2.30%)

Fee: One time $42.5k fee due at closing

Prepayment Fee: N/A

Term Loan B Commitment: $5 million

Availability: Available through March 31, 2026 for permitted acquisitions

Repayment: ~ 12 months interest only through March 31, 2026 followed by 5% annual amortization paid quarterly in each of the subsequent four years (20% scheduled amortization over a four year period)

Excess Cash Flow: Excess cash flow repayment provision based on specified percentages aligned to negotiated leverage ratio thresholds (i.e. 50% when leverage ratio >= 2.50; 25% when leverage ratio <2.5 and >= 2.00; 0% when leverage ratio < 2.00)

Rate: Variable - SOFR + 3.25% (with SOFR floor = 2.30%)

Fee: No fee for Term B specific advances

Prepayment Fee: N/A

Covenants:

Testing Period A (closing through June 30, 2026)

• Minimum Cash
• Committed Debt to Annual Recurring Revenue (ARR)

Testing Period B (September 30, 2026 through March 31, 2030)

• Maximum Leverage
• Fixed Charge Coverage Ratio

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