SurveyMonkey, along with its parent company, SVMK, amended its 2017 refinancing facility agreement with a $220 million term loan and a $75 million revolving loan. It also paid down over $100 million of its outstanding debt.

The term loan will be repaid in quarterly principal installments of $550,000, with any remaining principal, together with all accrued and unpaid interest, due and payable on October 10, 2025. SurveyMonkey may borrow, repay and re-borrow funds under the revolver until October 10, 2023, at which time the facility will terminate, and all outstanding loans under said facility, together with all accrued and unpaid interest, must be repaid.

Interest under the 2017 agreement was based upon LIBOR plus a spread for the term loan and revolving loan facility of 4.5% and 4.0%, respectively. Terms of the new agreement for the term loan are based on an adjusted LIBOR plus a spread of 3.75%. Terms for revolving loans under the new agreement for the revolver are based on an adjusted LIBOR plus a spread of 1.75% to 2.50%, based on SurveyMonkey’s leverage ratio.

At close, after giving effect to the borrowings made on the closing date under the new agreement, SurveyMonkey had $220 million of term loans outstanding and no outstanding revolving loans.

“As discussed in our S-1, we have utilized a portion of the proceeds from our initial public offering to reduce leverage and strengthen our balance sheet. We have also refinanced our credit facility and established more favorable terms which reduces our interest expense and provides us with additional flexibility to deploy capital opportunistically,” said SurveyMonkey CFO Tim Maly.

JPMorgan Chase Bank served as the administrative agent on the transaction. JPMorgan Chase Bank, Merrill Lynch and SunTrust Robinson Humphrey served as joint lead arrangers.