salesforce enters new revolver, term loan totaling $5 billion

By Taylor Fox

New York, Dec. 23 – salesforce.com, inc. entered into a revolving credit agreement on Dec. 23 with Citibank, NA as administrative agent, replacing and refinancing its second amended and restated credit agreement dated April 30, 2018 with Wells Fargo Bank, NA as administrative agent, as well as a new term loan agreement with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Initially, the commitment of all lenders under the five-year unsecured multicurrency revolver will be equal to $3 billion, of which $50 million will be available for the issuance of letters of credit and $100 million will be available for the borrowing of swingline loans.

The company may borrow, repay and reborrow revolving loans at any time prior to the earlier of Dec. 23, 2025 and the date of termination in whole of the lenders’ commitments under the credit agreement.

Borrowings under the revolver will bear interest at Libor plus an applicable margin calculated based on the company’s credit ratings. The commitment fee is also calculated based on the company’s credit ratings.

salesforce paid off all outstanding amounts and terminated all commitments under the existing credit agreement.

Citibank, BofA Securities, Inc., JPMorgan Chase Bank, NA, Barclays Bank plc, Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Wells Fargo Bank are the joint lead arrangers and joint bookrunners under the replacement revolving credit agreement. Bank of America and JPMorgan Chase Bank are syndication agents.

The new term loan provides the company with the ability to borrow up to $2 billion on an unsecured basis to finance a portion of the cash consideration of its pending acquisitions of Slack Technologies, Inc., the repayment of certain debt of Slack and to pay related fees, costs and expenses.

Borrowings will bear interest at Libor plus an applicable margin based on the company’s credit ratings.

salesforce will also pay to the lenders under the acquisition term loan customary fees, including undrawn commitment fees accruing from and after the date that is 90 days after the effective date to but excluding the earlier of the closing date and the termination or expiration of the commitments in respect of the loan agreement.

BofA Securities, Citibank, JPMorgan Chase Bank, Barclays Bank, Deutsche Bank Securities, RBC Capital Markets and Wells Fargo Bank are the joint lead arrangers and joint bookrunners for the term loan. Citibank and JPMorgan Chase Bank are syndication agents.

salesforce.com is a San Francisco-based cloud computing company.

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