Lyft closes five-year $420 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Nov. 7 – Lyft, Inc. entered into a credit agreement on Nov. 3 with JPMorgan Chase Bank, NA as administrative agent that provides for a $420 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on the earlier of Nov. 3, 2027 and Feb. 13, 2025 if the company’s liquidity minus the principal amount outstanding of its 2025 convertibles notes is less than $1.25 billion.

The company has the option to request to increase revolving commitments or add incremental loans in a total principal amount of up to $300 million, plus, after Sept. 30, 2023, an unlimited amount so long as Lyft’s senior secured leverage ratio does not exceed 2.5x.

Borrowings bear interest at term SOFR plus a variable rate based on the company’s total leverage ratio, ranging from 150 basis points to 225 bps.

A commitment fee ranging from 22.5 bps to 37.5 bps is also based on leverage ratio.

JPMorgan, Bank of America, NA, Bank of the West, KeyBank NA, Royal Bank of Canada, TD Securities (USA) LLC and Goldman Sachs Lending Partners LLC were the joint lead arrangers and joint bookrunners.

The company must maintain a minimum liquidity amount of at least $1.5 billion, tested on a quarterly basis, commencing with the quarter ending Dec. 31, 2022 through the quarter ending Sept. 30, 2023; a total leverage ratio not to exceed 3.5x, starting with the quarter ending Dec. 31, 2023 through the quarter ending Sept. 30, 2024 and thereafter a ratio not to exceed 3x, with an increase to 3.5x if the company has an acquisition for cash consideration greater than $75 million for the fiscal quarter during which the acquisition takes place and the three fiscal quarters immediately following; and a fixed-charge coverage ratio of at least 1.25x, starting with the quarter ending Dec. 31, 2023.

Proceeds may be used for general corporate purposes.

Lyft is a San Francisco-based ridesharing company.

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