BETHESDA, Md. - iLearningEngines, Inc. (NASDAQ: AILE), a company specializing in AI-powered learning and work automation, has secured an additional $20 million through an amendment to its existing Loan and Security Agreement, the company announced today. This financial move comes after the initial setup of a new senior secured revolving credit facility of $40 million, which was fully utilized at the time of closing on April 17, 2024.
The additional funding was obtained through the exercise of an uncommitted accordion feature included in the original Loan Agreement, which allowed for an increase in the revolving commitments by up to $20 million, subject to lender approval. This option was exercised on June 28, 2024, with the syndicate of lenders now including Valley National Bank alongside East West Bank.
The term of the Revolving Facility is set for three years, with the interest on outstanding loans pegged to the Adjusted Term SOFR rate plus a 3.50% per annum, maintaining a floor of 4.00%.
Harish Chidambaran, CEO of iLearningEngines, expressed optimism about the additional capital bolstering the company's growth plans, which may include strategic transactions to enhance platform adoption. Jack Grady, Senior Vice President of East West Bank, echoed the sentiment, highlighting the significant role of AI technology in current trends and supporting the funding of an AI leader like iLearningEngines.
iLearningEngines serves a global customer base across various sectors such as healthcare, education, and public services, offering AI applications and use cases through its proprietary platform. The company's No Code AI canvas is designed to enable rapid deployment and scaling of AI solutions, emphasizing data security and compliance.
The information provided is based on a press release statement from iLearningEngines Holdings, Inc.
InvestingPro Insights
Amidst iLearningEngines' strategic financial maneuvering, investors and stakeholders are closely monitoring the company's market performance and valuation metrics. According to recent data from InvestingPro, iLearningEngines, Inc. (NASDAQ: AILE) is navigating a complex financial landscape. With a market capitalization of $1.21 billion, the firm's financial health and growth prospects are of keen interest to market participants.
InvestingPro data reveals that iLearningEngines has experienced a significant revenue growth of 32.94% in the last twelve months as of Q1 2024, showcasing the company's ability to increase its sales figures. Despite this, the company is trading at a notably high EBITDA valuation multiple, reflecting a market expectation of future growth or potential overvaluation.
Investors should note that the company's price has seen a substantial recovery with a 54.64% return over the last month, although it has fallen by 28.12% over the last three months. This volatility is a critical factor for risk assessment, as highlighted by an InvestingPro Tip, which notes that the stock generally trades with high price volatility. Additionally, while the company's liquid assets exceed short-term obligations, indicating a healthy short-term financial position, it's important to recognize that analysts are not expecting profitability this year, and the net income is anticipated to drop.
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