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VeriSign enters into $200 million revolving credit facility due 2024
By Sarah Lizee
Olympia, Wash., Dec. 13 – VeriSign, Inc. entered into a credit agreement with JPMorgan Chase Bank, NA as administrative agent on Thursday, providing for a $200 million committed unsecured revolver, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan, BofA Securities, Inc. and U.S. Bank NA are joint lead arrangers.
Loans may be extended in dollars and specified alternative currencies.
The new facility includes a $35 million sublimit for the issuance of standby letters of credit, a $50 million sublimit for swingline loans and a $50 million sublimit for loans in alternative currencies.
The new credit agreement also provides the company with the option to invite lenders to bid to make loans to the company at negotiated interest rates.
Loans will bear interest at Libor or Euribor plus 112.5 basis points to 162.5 bps, depending on the leverage ratio and the applicable ratings. For competitive bid loans, the rate of interest will be agreed with the bidding lenders.
Borrowings may be used for working capital purposes, to finance acquisitions, stock repurchases, and capital expenditures, and other general corporate purposes. Letters of credit will be issued for general corporate purposes.
There is an undrawn commitment fee that ranges from 12.5 bps to 22.5 bps based on the leverage ratio and the applicable ratings.
The facility will mature on Dec. 12, 2024. The company may request up to two one-year extensions.
The new credit agreement includes a financial covenant that the company not permit the leverage ratio at any time to exceed 4 to 1.
The company may request lenders to agree on a discretionary basis to increase the commitment amount by up to $150 million.
The new credit agreement, which was undrawn at closing, replaced the credit agreement dated as of March 31, 2015 with JPMorgan as administrative agent.
The internet infrastructure services provider is based in Reston, Va.
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