New Relic gets $2.65 billion credit facilities commitment for buyout

By Sara Rosenberg

New York, Sept. 14 – New Relic Inc. has a commitment for $2.65 billion of senior secured credit facilities to help fund its acquisition by Francisco Partners and TPG, according to a PREM14A filed with the Securities and Exchange Commission on Thursday.

The facilities consist of a $250 million revolver and a $2.4 billion first-lien term loan.

Other funds for the transaction will come from $4.02 billion of equity.

Under the agreement, New Relic is being purchased for $87.00 per share in cash. The all-cash transaction has an equity valuation of about $6.5 billion.

Closing is expected in late 2023 or early 2024, subject to customary conditions and regulatory items, including shareholder approval and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is not subject to a financing condition.

Morgan Stanley & Co. LLC is acting as lead financial adviser to Francisco Partners and TPG, and Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Moelis & Co. are also advising the firms. Qatalyst Partners is serving as financial adviser to New Relic.

New Relic is a San Francisco-based provider of an all-in-one observability platform for engineers.

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