Tenable Holdings enters $50 million revolver in addition to term loan

By Marisa Wong

Los Angeles, July 7 – Tenable Holdings, Inc. entered into a credit agreement on July 7 for a $50 million senior secured revolving credit facility due July 7, 2026 and a previously announced $375 million senior secured term loan due July 7, 2028, according to an 8-K filing with the Securities and Exchange Commission.

Subsidiary Tenable, Inc. is borrower.

The revolver includes a $15 million letter-of-credit sublimit.

The credit agreement also provides for one or more uncommitted incremental senior secured term loan facilities and incremental senior secured revolving credit facilities in an aggregate principal amount not to exceed the sum of (a) the greater of $125 million and trailing 12-months EBITDA, plus (b) additional amounts as long as, on a pro forma basis, the company’s first-lien net leverage ratio does not exceed 4.50 to 1.00.

In addition, the credit agreement allows for one or more uncommitted refinancing loan facilities.

Revolver borrowings bear interest at Libor plus 200 basis points to 250 bps, depending on the company’s first-lien leverage ratio.

The borrower will also pay a commitment fee ranging from 25 bps to 37.5 bps, based on the first-lien leverage ratio.

As previously reported, Tenable upsized its term loan B to $375 million from $350 million and reduced pricing to Libor plus 275 basis points from talk in the range of Libor plus 300 bps to 325 bps.

Additionally, the original issue discount on the term loan was changed to 99.75 from 99.5, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

The credit agreement requires that as of the last day of each fiscal quarter in which 35% of the revolver is drawn – net of $100 million of cash and excluding $6 million of issued and undrawn letters of credit – the total net leverage ratio not exceed 5.50 to 1.00.

Proceeds from the new facilities will be used for general corporate purposes.

JPMorgan Chase Bank, NA is administrative agent and collateral agent. JPMorgan, Morgan Stanley Senior Funding, Inc., Bank of America, NA and Barclays Bank plc acted as joint lead arrangers and joint bookrunners.

In connection with the new credit agreement, the company terminated its senior secured credit agreement dated July 24, 2020 with Silicon Valley Bank as administrative agent.

Tenable is a Columbia, Md.-based cybersecurity company.

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