VeriSign enters $200 million five-year replacement revolver

By Marisa Wong

Los Angeles, Dec. 8 – VeriSign, Inc. entered into a credit agreement on Dec. 6 with JPMorgan Chase Bank, NA as administrative agent for a $200 million committed unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The new credit agreement replaces the company’s credit agreement dated Dec. 12, 2019, which was terminated upon closing of the new agreement.

Loans under the new credit agreement may be extended in dollars and some specified alternative currencies.

The revolver includes a $35 million sublimit for the issuance of standby letters of credit, a $50 million sublimit for swingline loans and a $50 million sublimit for loans in alternative currencies.

The company may from time to time request lenders to agree on a discretionary basis to increase the commitment amount by up to an aggregate of $150 million during the term of the facility.

The facility matures on Dec. 6, 2028.

The company may request up to two one-year extensions, with each extension subject to the approval of the extending lenders, which must represent greater than 50% of the sum of the revolving loans in the aggregate then outstanding and the unused commitments in the aggregate at that time. The commitment of any lender that does not consent to an extension of the maturity date will be terminated on the then-effective maturity date.

The company may prepay loans in whole or in part at any time without penalty but subject to payment of any broken-funding costs of the lenders.

Loans will bear interest at adjusted term SOFR, or adjusted Euribor, plus a margin of between 100 basis points and 162.5 bps, depending on the company’s leverage ratio and ratings.

The company is also required to pay the lenders an undrawn commitment fee of between 9 bps and 22.5 bps, depending on the leverage ratio and ratings.

The new credit agreement includes a financial covenant that the company not permit the leverage ratio at any time to exceed 4.00 to 1.00, which may be increased (no more than twice over the term of the agreement) to 4.50 to 1.00 for four quarters following consummation of an acquisition involving consideration of $500 million or more.

The full amount of the new facility was undrawn as of Dec. 8.

Any borrowings may be used for working capital purposes, to finance acquisitions, stock repurchases and capital expenditures and for other general corporate purposes. Letters of credit will be issued for general corporate purposes.

The internet infrastructure services provider is based in Reston, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.