Instructure financing includes five-year $125 million revolver

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – Instructure Holdings, Inc. entered into a senior credit agreement on Oct. 29 that contains a five-year $125 million secured revolver in addition to the previously reported $500 million first-lien term loan B, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes borrowing capacity for letters credit.

The interest rate for borrowings under the revolver is equal to Libor plus a range from 200 basis points to 250 bps, and the commitment fee ranges from 40 bps to 50 bps, both based on leverage ratio.

If the outstanding amounts under the revolver exceed 35% of the total amount of the commitments, the company is required to maintain at the end of each fiscal quarter, commencing with the quarter ending June 30, 2022, a consolidated first-lien net leverage ratio of not more than 7.75 to 1.0.

JPMorgan Chase Bank, NA, Morgan Stanley Senior Funding Inc., Citibank, NA, Citicorp USA, Inc., Citicorp USA, Inc. and Golub Capital LLC are the lead arrangers. JPMorgan is the administrative agent.

Recommitments were scheduled to be due at 3 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt and for working capital and general corporate purposes.

Instructure is a Salt Lake City-based educational technology company.

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