Tenable Opens A $400 Million Revolving Credit Line, Undrawn, Maturing October 2031
An 8-K filed Tuesday shows the new facility, led by JPMorgan Chase, completes the refinancing of Tenable's prior credit agreement.
Tenable signed a credit agreement Tuesday for a $400.0 million senior secured revolving credit facility, according to an 8-K, with JPMorgan Chase Bank, N.A. as administrative agent, collateral agent and letter-of-credit issuer. The line was undrawn on the effective date apart from about $200,000 of outstanding letters of credit.
What the 8-K says
The facility includes a $40.0 million sublimit for letters of credit. Proceeds may be used for working capital and general corporate purposes, and the company can borrow, repay and reborrow until maturity without premium or penalty, subject to customary breakage costs.
Revolving loans mature on the fifth anniversary of the effective date, October 13, 2031. There is a catch: if certain other debt maturing later exceeds the greater of $167.0 million and 50% of Consolidated EBITDA, the revolver's maturity moves to 91 days before that debt's maturity.
That trigger is waived if Tenable's liquidity is above 125% of that debt, or if its total leverage ratio stays at or below 2.00 to 1.00 on a pro forma basis.
Two financial covenants are tested each fiscal quarter: a Total Leverage Ratio of 4.00:1.00 or less, and an Interest Coverage Ratio of at least 3.00:1.00. The leverage limit steps up by 0.50:1.00 for four quarters after a Material Acquisition. Unused availability carries a commitment fee of 0.175% to 0.35%, depending on leverage.
The debt is secured by substantially all assets of Tenable and certain material domestic subsidiaries, which must guarantee it. Tenable can also add incremental commitments or term loans in an unlimited amount, though lenders are not obliged to provide them.
What it changes
The revolver completes a refinancing that began with a convertible note financing in September, the company said in a press release. Together they replace the prior credit agreement, which included a Term Loan B, and a revolving facility that matured in July.
Tenable said the undrawn line gives it added flexibility with capital allocation. TENB closed at $41.29 on Tuesday.
Whether Tenable draws on the line is the next thing to track; for now, the 8-K shows only the $200,000 of letters of credit outstanding.
Sources
- 8-K Filing — Tenable Holdings, Inc. (TENB) — SEC EDGAR
- Exhibit a10132026pressrelease.htm — Tenable Holdings, Inc. 8-K exhibit — SEC EDGAR
