SolarWinds enters into $125 million revolving facility with Wells Fargo

By Jennifer Chiou

New York, Oct. 7 - SolarWinds, Inc. entered into on Oct. 4 a $125 million revolving credit facility with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $30 million sublimit for letters of credit and a $15 million swingline loan sublimit.

The credit agreement also contains an incremental facility permitting the company to arrange up to an aggregate of $75 million of additional commitments.

Proceeds from the loan may be used for general corporate purposes, including to finance acquisitions.

Borrowings bear interest at Libor plus 125 basis points to 200 bps.

Through subsidiary SolarWinds Worldwide, LLC, the company entered into on Oct. 1 a plan of merger and reorganization with Confio Corp. Under the agreement, SolarWinds has acquired Confio for a purchase price of $103 million.

The loan will mature on Oct. 4, 2018.

Based in Austin, Texas, SolarWinds develops and markets enterprise information technology infrastructure management software.

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