Enfusion enters $100 million five-year revolving credit facility

By Marisa Wong

Los Angeles, Sept. 18 – Enfusion, Inc. entered into a new $100 million revolving credit facility on Sept. 15, according to a press release and 8-K filing with the Securities and Exchange Commission.

The lenders under the credit facility are primarily a syndicate of Enfusion’s relationship banks, including Bank of America, NA.

The credit facility matures on Sept. 15, 2028 and includes an accordion feature that allows for up to $50 million of additional borrowing capacity.

There is a $10 million sublimit for the issuance of letters of credit and a $10 million sublimit for swingline loans.

Borrowings bear interest at term SOFR plus 10 basis points plus an applicable margin based on the company’s consolidated net leverage ratio that ranges from 200 bps to 275 bps.

The company is also required to pay a commitment fee of 20 bps to 25 bps on the unused portion of the commitments, also depending on the consolidated net leverage ratio.

The credit agreement contains two financial covenants. The first financial covenant requires the company’s consolidated net leverage ratio as of the end of any four fiscal quarter period to not exceed, beginning with the fiscal quarter ending Sept. 30, 2023 through and including Sept. 30, 2024, 4:00 to 1.00 and, beginning with the fiscal quarter ending Dec. 31, 2024 and thereafter, 3.75 to 1:00; provided that the consolidated net leverage ratio may temporarily increase to 4.25 to 1.00 following a material acquisition. The second financial covenant prohibits the borrower from having a consolidated interest coverage ratio of less than 2.50 to 1.00 as of the last day of any four fiscal quarter period.

No loans were drawn at closing.

“This facility significantly enhances the flexibility of our balance sheet and gives us another cost-effective source of capital that we can use to invest in our growth and pursue potential acquisition opportunities,” chief executive officer Oleg Movchan said in the release.

Bank of America is the administrative agent, and BofA Securities, Inc. is the lead arranger and bookrunner.

Concurrent with entering into the new credit agreement, the company paid all outstanding obligations under and terminated its $5 million revolving credit agreement with Silicon Valley Bank which was scheduled to mature on Dec. 17, 2025. At the time of termination, there were no borrowings outstanding under the prior credit agreement.

Enfusion is a Chicago-based cloud-native software-as-a-service (SaaS) provider for investment managers.

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