j2 Cloud gets $100 million five-year credit facility via MUFG

By Wendy Van Sickle

Columbus, Ohio, Jan. 9 – j2 Global, Inc. wholly owned subsidiary j2 Cloud Services, LLC entered on Monday into a $100 million credit facility due Jan. 7, 2024 with MUFG as lead arranger and as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at Libor plus a margin ranging from 150 basis points to 250 bps, depending on the company’s leverage ratio. The initial margin is 200 bps.

The commitment fee is initially 30 bps and can range from 20 bps to 40 bps.

Proceeds are to be used for working capital and general corporate purposes.

j2 Cloud must maintain a maximum leverage ratio of 3x, and j2 Global must maintain a maximum leverage ratio of 3.5x, in each case as of the last date of any fiscal quarter.

Additionally, j2 Cloud must maintain a minimum EBITDA of $50 million for any fiscal quarter.

The provider of cloud services is based in Los Angeles.

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