iLearningEngines, Inc. (("iLearningEngines", "iLE", or "the Company", NASDAQ:AILE), a leader in AI-powered learning automation and information intelligence for corporate and educational use, is pleased to announce that the Company has entered into a Loan and Security Agreement with East West Bank (the "Lender"). This facility brings the total gross funds raised in connection with the business combination with Arrowroot Acquisition Corp. (the "Business Combination") to approximately $92.8 million.
Following the successful completion of the Business Combination, the Company's wholly owned subsidiary, iLearningEngines Holdings, Inc. ("iLE Holdings"), entered into a Loan and Security Agreement with the Lender pursuant to which the Lender provided iLE Holdings with a new senior secured revolving credit facility in a principal amount of up to $40 million (the "Revolving Facility"). The Revolving Facility also provides 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. 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%. iLE Holdings drew the full $40 million at closing, a portion of which was used to repay in full iLE Holdings' term loan credit facilities with Venture Lending & Leasing IX, Inc. and WTI Fund X, Inc.
"We are pleased to have raised approximately $92.8 million in gross proceeds during our successful go public process, and this additional funding will help us to execute on our growth plans going forward," said iLearningEngines CEO Harish Chidambaran.