Akamai gets new $500 million five-year revolving credit agreement

By William Gullotti

Buffalo, N.Y., Nov. 23 – Akamai Technologies, Inc. signed a new $500 million five-year revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on Nov. 22, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement, which matures Nov. 22, 2027, provides for an initial $500 million in revolving loans. As with the previous facility, the revolver can be increased to up to $1 billion under some circumstances.

Borrowings bear interest at SOFR, Euribor, Sonia or Tibor plus a margin that ranges from 75 basis points to 112.5 bps, and the commitment fee ranges from 7 bps to 12.5 bps, in each case depending on the leverage ratio. The margin and fee were set at 87.5 bps and 8 bps, respectively, at signing.

Covenants include a maximum consolidated leverage ratio of 3.5 to 1, with a step-up in the event of some acquisitions.

Borrowings may be used to finance working capital needs and for general corporate purposes.

JPMorgan is also the bookrunner, as well as acting as a joint lead arranger together with Morgan Stanley Senior Funding, Inc., BofA Securities, Inc., Citibank, NA, HSBC Securities (USA) Inc. and TD Securities (USA) LLC.

Morgan Stanley, Bank of America, NA and Citibank are the syndication agents.

HSBC Bank USA, NA and Toronto-Dominion Bank, New York Branch are the co-documentation agents.

Cambridge, Mass.-based Akamai is an internet company that provides content delivery and cloud infrastructure services.

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