180 Degree Capital portfolio company announces receipt of CARES tax refund

180 Degree Capital (TURN) noted the recent announcement by its portfolio company, Synchronoss Technologies, that stated SNCR received $30.2 million of its $33.9 million tax refund, and that SNCR expects the remaining $3.7 million to be received prior to Labor Day 2025. SNCR noted in its press release that: “Seventy-five percent of the total proceeds from the refund, totaling approximately $25.4 million after the receipt of the final payment, will pay down a portion of the $200 million term loan facility at par pursuant to the terms of the Credit Agreement. This will result in an annual interest savings of approximately $2.9 million at the current interest rate. After the payments have been applied to the term loan, (SNCR) will have total debt of $173.4 million, cash of approximately $30 million and net debt of approximately $143 million. (SNCR) has reduced its total debt by over $100 million dollars over the course of the last 4 years. Additionally, (SNCR) expects to be eligible for a one-time 50-basis point interest rate step down on the first anniversary of the term loan pursuant to the terms of the Credit Agreement based on the improved debt leverage ratio.”