TaskUs borrows $270 million term loans, gets $190 million revolving commitments

By Marisa Wong

Los Angeles, Sept. 7 – TaskUs, Inc. entered into an amendment on Wednesday to its amended and restated credit agreement dated Sept. 25, 2019 with JPMorgan Chase Bank, NA as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The borrower is TU BidCo, Inc., a direct wholly owned subsidiary of TU MidCo, Inc., which is a wholly owned subsidiary of TaskUs. TU MidCo and some of TU BidCo’s subsidiaries are guarantors.

On the amendment date, TU BidCo borrowed term loans in an amount equal to $270 million and received revolving commitments in an amount equal to $190 million.

The proceeds of the terms loans were used to refinance outstanding borrowings under the existing credit agreement and to pay transaction fees and expenses.

The borrower will be able to draw on the revolving commitments for working capital and general corporate purposes (including permitted acquisitions).

Loans will bear interest at adjusted term SOFR plus a margin of 225 basis points, subject to a term SOFR floor of zero. The applicable margins have not been modified from the existing credit agreement other than to replace adjusted Libor with adjusted term SOFR.

Beginning with the fiscal quarter ending Dec. 31, the borrower will be required to make quarterly amortization payments on the last business day of each fiscal quarter in an aggregate principal amount equal to 0.25% of the original principal amount of the term loans for the first year following the amendment date, 0.625% of the original principal amount for the second year, 1.25% for the third year, 1.875% for the fourth year and 2.5% after that until the maturity date.

The term loans and revolving commitments under the amended and restated credit agreement will mature on the date that is five years after the amendment date.

In addition, the amendment modified some covenants of the existing credit agreement to provide additional flexibility for the borrower, including a financial maintenance covenant, tested as of the last day of any fiscal quarter, consisting of a consolidated total net leverage ratio not to exceed 4.00 to 1.00, stepping down to 3.75 to 1.00 beginning with the fiscal quarter ending Sept. 30, 2024 and stepping down further to 3.50 to 1.00 beginning with the fiscal quarter ending Sept. 30, 2025.

TaskUs is an outsourcing company based in New Braunfels, Tex.

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