Backblaze, a cloud storage innovator providing a modern alternative to traditional cloud providers, closed a senior secured revolving credit facility in an aggregate principal amount of up to $20 million, of which an aggregate amount of up to $3 million will be available through a letter of credit sub facility, with Citizens Bank. Backblaze enters into the agreement with a strong liquidity profile, including more than $50 million in cash and marketable securities as of March 31, 2025.
“Coupled with our recent $37.5 million oversubscribed equity offering in November 2024, this new credit facility with Citizens further strengthens our financial flexibility and provides us with improved liquidity at a more competitive cost of capital,” Marc Suidan, CFO of Backblaze, said. “It positions us well to execute on our strategic priorities and support the company’s long-term growth. We are excited to partner with Citizens as our new banking partner.”
The new credit facility provides for borrowing capacity at an interest rate based upon the company’s choice of an adjusted Secured Overnight Financing Rate (SOFR) plus an applicable margin of 3.25%, or an alternate base rate plus an applicable margin of 2.25%. The term of the loan is initially set at 2 years, with a one-year extension. The credit facility includes customary representations, warranties, and covenants, including financial covenants, and customary closing and administrative fees.
