Daily News: May 16, 2018

JPMorgan Agents $500MM Revolver for Akami


Akamai Technologies entered into a five-year, $500 million revolving credit agreement with JPMorgan Chase as administrative agent, sole bookrunner and joint lead arranger. The financing will be used for working capital needs and general corporate purposes.

According to a related 8-K filing, Morgan Stanley Senior Funding acted as syndication agent, with Bank of America, HSBC Bank, TD Bank and Sumitomo Mitsui Banking serving as co-documentation agents. Morgan Stanley Senior Funding, Merrill Lynch, HSBC Bank, TD Bank and Sumitomo Mitsui Banking joined JPMorgan as joint lead arrangers.

Under specified circumstances, the facility can be increased to up to $1 billion in aggregate principal amount. It contains customary representations and warranties, affirmative and negative covenants and events of default.

The interest rates applicable to revolving loans are, at Akami’s option, at either an adjusted LIBOR rate, plus an interest margin based on the company’s consolidated leverage ratio, or a base rate, plus an interest margin also based on the company’s consolidated leverage ratio.

Akami must pay an unused commitment fee during the term of the agreement that varies between 0.075% and 0.15%, depending on the company’s consolidated leverage ratio.

Akamai Technologies provides content delivery network services via a massively distributed platform with more than 200,000 servers across 130 countries.