Cvent, a meetings, events and hospitality technology provider, closed a $500 million, five-year senior secured revolving credit facility through a syndicate of banks led by PNC Bank, with Cvent as borrower. This new facility, entered into on May 27, replaces the company’s current $266 million term loan facility and $40 million revolving credit facility. Cvent expects the refinancing will result in annual interest savings of approximately $4 million.
The additional borrowing capacity under the new loan facility, combined with the company’s positive free cash flow from operations, are expected to help Cvent pursue strategic opportunities to expand its market leadership position and deepen its platform capabilities.
“We are pleased with the more favorable terms of this new loan facility and the financial flexibility it gives us moving forward,” Billy Newman, CFO at Cvent, said. “During the process we saw strong interest, resulting in the transaction being over-subscribed, which we believe is a reflection of our financial strength and growth prospects. The increase of our borrowing capacity enhances our ability to pursue strategic growth opportunities as we focus on delivering long-term shareholder returns.”
