Mimecast gets $100 million term loan, $50 million revolver due 2023

By Sarah Lizee

Olympia, Wash., July 24 – Mimecast Ltd. entered into a credit agreement on Monday with JPMorgan Chase Bank, NA as administrative agent, bookrunner and lead arranger providing for a $100 million senior secured term loan and a $50 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Interest accrues at Libor plus a margin ranging from 137.5 basis points to 187.5 bps, based on the company’s ratio of debt to consolidated EBITDA. The current interest rate is Libor plus 162.5 bps.

The facilities mature on July 23, 2023.

There is no existing debt being replaced by the credit facilities.

The facilities will be available to fund working capital and for other corporate purposes, including to finance permitted acquisitions and investments.

Financial covenants require the company to maintain a consolidated secured leverage ratio, beginning on Sept. 30, of not more than 3 to 1 for the four consecutive fiscal quarter period ending on the last day of each fiscal quarter, with a step-up to 3.5 to 1 for any four-quarter period in which the company completes a permitted acquisition having a total purchase price in excess of $25 million.

The company must also maintain a consolidated interest expense ratio of 3 to 1 beginning on Sept. 30 and for each four consecutive fiscal quarter period ending on the last day of each fiscal quarter onwards.

Based in London, the company offers cloud-based security, archiving and continuity services to protect e-mail via a subscription service.

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