BuzzFeed, Inc. ( BZFD ) shares are trading higher Tuesday after the company announced it entered into a $40 million term loan provided by SoundPoint Agency.

What To Know: The agreement will offer BuzzFeed ( BZFD ) increased financial flexibility to support its business operations, simplify its capital structure and invest in strategic initiatives.

The company intends to use a portion of the proceeds to repay, in full, its outstanding convertible notes. 

The company also agreed to purchase 1.8 million shares of its Class A common stock in a privately negotiated transaction with a single shareholder at a price of $1.824 per share. 

The new credit facility enhances BuzzFeed’s capital position and accelerates its focus on long-term growth and financial discipline.

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BZFD Price Action: At the time of writing, BuzzFeed ( BZFD ) stock is trading 24.2% higher at $2.38, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.