Lyft lifts liquidity to $2.22 billion through $420 million revolver

By Devika Patel

Knoxville, Tenn., Nov. 8 – Lyft, Inc. increased liquidity to over $2 billion this month, having negotiated a $420 million revolving credit agreement that matures at the earliest in 2025.

“We ended the third quarter of 2022 with unrestricted cash, cash equivalents and short-term investments of $1.8 billion and, today, we announced we’ve entered into a revolving credit facility for $420 million that will provide us with additional available liquidity,” chief financial officer Elaine Paul said on the company’s third quarter ended Sept. 30 earnings conference call on Monday.

Cash and cash equivalents were $143,715,000 as of Sept. 30, 2022, compared to $457,325,000 as of Dec. 31, 2021.

Long-term debt, net of current position, was $814,736,000 as of Sept. 30, 2022, compared to $655,173,000 as of Dec. 31, 2021.

On Nov. 3, the company entered into the $420 million revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent.

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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