iLearningEngines, Inc. a leader in AI-powered learning and work automation, announced that it has entered into a First Amendment to Loan and Security Agreement (the “Amendment”) with the involved financial institutions (the “Lenders”) and East West Bank, as administrative agent and collateral agent for the Lenders, which amends the existing Loan and Security Agreement, dated April 17, 2024, between iLearningEngines’ wholly owned subsidiary, iLearningEngines Holdings, Inc. (“iLE Holdings”), the Lenders and East West Bank (the “Loan Agreement”). The purpose of the Amendment is to, among other things, secure an incremental $20 million in funding.
On April 17, 2024, iLE Holdings entered into the Loan Agreement which included a new senior secured revolving credit facility in a principal amount of up to $40 million (the “Revolving Facility”), which was fully drawn at the time of closing. The Revolving Facility also provided for an uncommitted accordion allowing iLE Holdings to increase the revolving commitments by an additional principal amount of $20 million at iLE Holdings’ option and upon Lender’s approval. iLearningEngines is announcing that the full $20 million accordion was drawn on June 28, 2024, and that Valley National Bank was added to the syndicate along with East West Bank. The Revolving Facility has a term of 3 years and outstanding loans under the Revolving Facility bear interest at a rate equal to the Adjusted Term SOFR rate (with an interest period of 1 or 3 months at iLE Holdings’ option) plus 3.50% per annum, subject to an Adjusted Term SOFR floor of 4.00%.
“We see a tremendous opportunity to increase adoption of the iLearningEngines platform, both through organic growth and, potentially, strategic transaction, and this $20 million in additional funding increases our ability to execute all aspects of our growth plans,” said Harish Chidambaran, Chief Executive Officer of iLearningEngines. “We are also pleased to have expanded our banking relationship to now include Valley Bank in addition to East West Bank.”
“We believe the adoption of AI is one of the most powerful technology trends happening today, and we are pleased to help fund the growth of an AI leader like iLearningEngines,” said Jack Grady, Senior Vice President of East West Bank.
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