LegalZoom Raises $171 Million for Repurchase and Dividend
May 19, 2015
PRESS RELEASE – Fifth Street Asset Management Inc. (NASDAQ:FSAM) (“FSAM”) today announced that its affiliate, Fifth Street Management LLC, served as Administrative Agent and Lead Arranger for a $171 million one-stop financing facility to support LegalZoom.com, Inc. (“LegalZoom”). LegalZoom is the nation’s leading provider of quality online legal solutions for families and small businesses. The financing facility, which consists of a first lien term loan and a revolving credit facility, includes investments from Fifth Street Finance Corp. (NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR). The terms include the ability to access an additional $75 million over and above the $171 million to fund future acquisitions.
“With its trusted brand, passionate team and cutting edge technology, LegalZoom continues to transform the legal industry by offering millions of Americans access to smart, cost-effective legal protection,” noted Ivelin M. Dimitrov, FSAM’s Chief Investment Officer, adding, “We are proud to support the Permira funds and LegalZoom on this transaction and in the future as they continue to expand their product offerings and geographic reach.”
“LegalZoom funded its growth over the last 14 years from a single angel round of $1 million and internal operating cashflow,” said John Suh, CEO of LegalZoom, adding, “As we expand in the U.S. and abroad, the combined resources of the Permira funds and Fifth Street will help deliver access to capital commensurate with the opportunity to reshape the delivery of legal services.”
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LegalZoom is the nation’s leading provider of quality online legal solutions for families and small businesses. Founded 14 years ago by attorneys with experience at some of the top law firms in the country, LegalZoom has helped over two million Americans become protected with binding legal documents. Although LegalZoom is not a law firm, it can help people access an attorney through its legal plans. The company has offices in Austin, TX, Glendale, CA, Mountain View, CA and London, UK. For more information, visit www.legalzoom.com.