Cloud computing company Blackbaud entered into a new $700 million credit facility, including a $300 million senior secured term loan and a $400 million senior secured revolving credit facility. The facility has the capacity to incrementally expand by an additional $200 million or a greater amount determined by a pro forma net leverage ratio test, subject to certain terms and conditions.

Blackbaud borrowed $300 million under the term loan and $110 million under the revolving loan, which was used to repay in full Blackbaud’s indebtedness under its existing credit facility, pay certain fees and expenses that were incurred in connection with the new credit facility and for other general corporate purposes. The new credit facility, which matures on June 2, 2022, replaces the existing credit facility entered into in 2014.

According to a related 8-K filing, Bank of America served as administrative agent for the transaction. Merrill Lynch, Pierce, Fenner & Smith, PNC Capital Markets, Wells Fargo Securities and Regions Capital Markets acted as joint lead arrangers and joint bookrunners on the financing.

“Our success in executing the strategy we laid out in 2014 caused us to ‘outgrow’ the existing credit facility as our free cash flow will have increased by 32% from 2014 through 2017, despite having become a full cash tax payer during this period,” said Tony Boor, Blackbaud’s executive vice president and CFO. “The credit markets remain strong for companies with solid financial performance and we took advantage of this market as our existing credit facility would have expired within two years. We’ve entered into a facility that is designed to grow with our business and offers us greater flexibility as we pursue our long-term aspirational goals.”

Headquartered in Charleston, SC, Blackbaud serves nonprofits, foundations, corporations, education institutions and individual change agents.