Direct Digital Holdings Inc. has announced a significant financial restructuring through its Seventh Amendment to the Term Loan and Security Agreement. The company has agreed to convert $25 million in term loans into newly authorized Series A Preferred Stock. This conversion reduces the outstanding term loans to approximately $9.36 million. The agreement includes a $1 million closing fee due by September 30, 2025, or upon loan repayment. Additionally, an exit fee of $25 million is due upon full redemption of the Series A Preferred Stock unless redeemed by December 31, 2026, in which case the fee is waived. The move is part of Direct Digital Holdings' strategic financial maneuvers to optimize its capital structure.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Direct Digital Holdings Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001104659-25-075879), on August 11, 2025, and is solely responsible for the information contained therein.