Exhibit 99.1
Edgio, Inc. Launches Strategic Financial Restructuring to Facilitate Sale and Strengthen Operations
Enters into Stalking Horse Asset Purchase Agreement in Connection with Contemplated In-Court Sale Process
Files Voluntary Petitions for Chapter 11 Relief to Effectuate a Transaction
Committed to Continue Delivering with Excellence for Partners and Customers
Phoenix, Arizona – September 9, 2024 – Edgio, Inc. (Nasdaq: EGIO) and certain of its affiliates (collectively, “Edgio” or the “Company”), the platform of choice for security, speed, and simplicity, today announced that it has voluntarily filed for chapter 11 relief (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Court”) to effectuate one or more sale transactions that should allow for the continued operation of the Company’s business under new ownership.
The Company enters this process with the support of its primary lender, Lynrock Lake Master Fund LP (“Lynrock”), to facilitate smooth and efficient completion of the Chapter 11 Cases. To anchor the sale process, Edgio has entered into a stalking horse asset purchase agreement with Lynrock, which has agreed to acquire assets of the Company through a credit bid in the amount of $110 million of the existing secured debt held by Lynrock. Prior to the commencement of the Chapter 11 Cases, the Company engaged in discussions with a number of interested parties with respect to a potential sale of all or part of the Company’s businesses and assets. In response to such interest, the Company intends to use a Court-supervised sale process to seek the highest or otherwise best bid for its assets, including its valuable individual business product offerings:
| | • | | Edgio Applications and Security Suite |
| | • | | Securing high performance website and applications using AI for blue-chip customers globally |
| | • | | Managed SaaS platform for streaming operations for the largest media, sports, and cable brands |
| | • | | Leading edge network purpose-built for enterprises globally |
Edgio’s award winning products and solutions have been recognized for their innovation and solid performance and are positioned to contribute to the rapidly evolving digital landscape. The Company is targeting the sale process to be completed in approximately 80 days, if not sooner.
“We are confident the flexibility gained through this process will enable the continued delivery of video streaming and web security solutions to our over 935 global customers who rely on us daily,” said Todd Hinders, Chief Executive Officer, Edgio.
Edgio has also entered into an agreement to receive approximately $15.6 million in principal amount of funded debtor-in-possession (“DIP”) financing from Lynrock that, following approval by the Court, is expected to ensure continuity of delivering its products to customers in the ordinary course throughout the sale process and chapter 11 cases. To avoid any disruption to its operations, Edgio has also filed standard “first day” motions in the chapter 11 cases, seeking court approval to continue supporting its operations throughout the sale process.
These motions, upon approval, will help facilitate the continued payment of employee wages and benefits, enable payments to critical vendors and other relief measures customary in these circumstances.
