Asana entered into a credit agreement on Nov. 9 with Wells Fargo Bank as administrative agent, swingline lender and an issuing lender, and MUFG Bank as syndication agent and an issuing lender, along with the lenders party to the agreement, according to an 8-K filing. Wells Fargo Securities LLC and MUFG Bank served as joint lead arrangers and joint bookrunners.
The agreement provides Asana with a senior secured revolving credit facility of $150 million, with sublimits of up to $30 million for standby letters of credit and up to $15 million for swingline loans. Borrowings may be used for working capital and general corporate purposes.
Asana is not obligated to draw on the facility and did not draw any amount on Nov. 9. Borrowings are available through Nov. 9, 2031, when the facility terminates and all outstanding loans, together with accrued and unpaid interest, must be repaid in full.
Borrowings other than swingline loans are available at Asana’s option as term SOFR loans or base rate loans. Swingline loans bear interest at the applicable base rate. Term SOFR loans accrue interest at the term SOFR rate plus a margin of 2.00% until Asana delivers its compliance certificate for the fiscal quarter ending Jan. 31, 2027. Afterward, the margin will range from 2.00% to 2.50%, depending on Asana’s consolidated total net leverage ratio. Base rate loans accrue interest at the base rate plus a margin of 1.00% until the delivery of that certificate and then 1.00% to 1.50%, depending on the same ratio.
The facility also carries a variable commitment fee on unused commitments, payable quarterly. The fee is 0.20% per annum until the delivery of the compliance certificate for the quarter ending Jan. 31, 2027, and then is tied to Asana’s consolidated total net leverage ratio, ranging from 0.20% to 0.30% per annum.
On Nov. 6, Asana used cash on hand to repay in full all outstanding obligations under its Nov. 7, 2022, credit agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Co., as administrative agent and collateral agent, and the other parties to that agreement, as amended. The prior agreement was terminated, and all guarantees and liens under it were released.
