LogMeIn gets $100 million five-year revolver at Libor plus 150 bps

By Angela McDaniels

Tacoma, Wash., Feb. 24 – LogMeIn, Inc. and subsidiary LogMeIn Ireland Holding Co. Ltd. entered into a multicurrency credit agreement on Feb. 18 that provides for $100 million secured revolving credit facility due Feb. 18, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 150 basis points, and the initial commitment fee is 20 bps. The margin over Libor ranges from 150 bps to 200 bps, and the commitment fee ranges from 20 bps to 30 bps, both based on the company’s total leverage ratio.

Interest rates for loans in currencies other than dollars range from 150 bps to 200 bps above the respective Libor for those currencies, also based on the company’s total leverage ratio.

JPMorgan Chase Bank, NA acted as administrative agent. J.P. Morgan Securities LLC and Wells Fargo Securities, LLC acted as joint bookrunners, with JPMorgan acting as the lead arranger.

The revolver has a $50 million accordion feature.

The currencies that are currently available for borrowing under the revolver are dollars, euros and pounds sterling. Additional currencies may be added with lender approval. The maximum amount of borrowings in currencies other than dollars is $25 million.

The revolver also has a $10 million sublimit for letters of credit.

The company and its subsidiaries expect to use the revolver for general corporate purposes, including, but not limited to, the potential acquisition of complementary products or businesses, share repurchases and working capital.

The obligations of the company under the revolver are guaranteed by its material U.S. subsidiaries (other than any Massachusetts securities corporation), and the obligations of LogMeIn Ireland are guaranteed by the company, the company’s material U.S. subsidiaries (other than any Massachusetts securities corporation) and the material first-tier subsidiaries of LogMeIn Ireland.

The obligations of the company, LogMeIn Ireland and each of the guarantors are secured by substantially all of their assets, including a pledge of as 100% of the capital stock of the company’s existing and future U.S. subsidiaries and 65% of the capital stock of the first-tier non-U.S. subsidiaries of the company and LogMeIn Ireland.

Additionally, certain interest rate swap obligations, hedging obligations and banking services obligations (including treasury management services) are guaranteed and secured on the same basis.

The credit agreement imposes limits on capital expenditures of the company and its subsidiaries and requires the company to maintain a maximum total leverage ratio and a minimum interest coverage ratio.

Boston-based LogMeIn provides remote access and remote desktop software.

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