Daily News: November 28, 2017

JPMorgan Agents $273MM Facility for Progress Software

Progress Software amended its credit agreement to include a $123.7 million senior secured term loan and a $150 million revolving credit facility.

According to a related 8-K filing, JPMorgan Chase Bank served as administrative agent, sole bookrunner and sole lead arranger for the transaction. Wells Fargo Bank and Citizens Bank were syndication agents. Bank of America, Citibank, Silicon Valley Bank and Santander Bank were documentation agents.

The term loan, net of principal payments, was originally used to partially fund Progress’ acquisition of Telerik AD. The revolving credit facility has sublimits for swing line loans up to $25 million and for the issuance of standby letters of credit in a face amount up to $25 million. Progress expects to use the revolving credit facility for general corporate purposes, including acquisitions of other businesses, and may also use it for working capital.

Interest rates for the term loan and revolving credit facility are determined at the option of Progress and would range from 1.50% to 2.00% above the Eurodollar rate for Eurodollar-based borrowings or would range from 0.50% to 1.00% above the defined base rate for base rate borrowings, in each case based upon Progress’ leverage ratio. Additionally, Progress may borrow certain foreign currencies at rates set in the same range above the respective London interbank offered interest rates for those currencies, based on Progress’ leverage ratio. A quarterly commitment fee on the undrawn portion of the revolving credit facility is required, ranging from 0.25% to 0.35% per annum, based upon Progress’ leverage ratio. At closing of the term loan and revolving credit facility, the applicable interest rate and commitment fee would be at the lowest rate in each range.

The credit facility matures on November 20, 2022, when all amounts outstanding will be due and payable in full.