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Silver Spring gets $75 million revolver via Silicon Valley Bank, HSBC
By Marisa Wong
Morgantown, W.Va., Dec. 23 – Silver Spring Networks, Inc. entered into a senior secured credit agreement with Silicon Valley Bank as administrative agent and a lender and HSBC Bank USA, NA as a lender for a $75 million revolving loan, according to an 8-K filing with the Securities and Exchange Commission.
The facility has an available letter-of-credit sub-facility totaling $75 million and an available swingline sub-facility in the amount of $5 million.
Loans bear interest at (i) the higher of (a) the Prime rate and (b) the Federal Funds effective rate plus 50 basis points, but in any case at a minimum rate of 0%, plus (ii) 75 bps.
The facility matures in December 2017.
The company is required to pay an annual commitment fee on the average daily unused portion of the facility.
Letters of credit drawn down but not reimbursed within the specified time after its receipt of notice of drawdown will accrue interest at the interest rate applicable to the revolving loans plus 200 bps until reimbursed or unless the reimbursement amounts are converted into revolving loans.
The company also has the option to prepay its borrowings without penalty prior to maturity.
Among other negative covenants, the company must comply with some financial covenants, including maintaining a minimum adjusted quick ratio or in some events a minimum consolidated adjusted EBITDA.
As of Dec. 18, the company had no outstanding borrowings under the credit facility.
The Redwood City, Calif., company provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid.
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