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Open Lending adds $150 million term loan, increases revolver
By Marisa Wong
Los Angeles, Sept. 15 – Open Lending Corp. entered into a first amendment on Sept. 9 to its credit agreement dated March 19, 2021 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The amendment provides for senior secured credit facilities in an aggregate principal amount of $300 million by establishing a new senior secured term A loan totaling $150 million and increasing the aggregate principal amount of the commitments under the revolver by $100 million to $150 million.
The maturities of the term A loan and the revolver have been extended to Sept. 9, 2027.
In addition, the amendment replaces Libor with SOFR as the interest rate benchmark; decreases the unused fees and the interest rate margins applicable to the revolver; provides lower interest rate margins applicable to the term A loan than the interest rate margins applicable to the prior term loans under the credit agreement that have been repaid; provides financial covenant flexibility by extending the date at which the net leverage ratio covenant steps-down from 3.50 to 1.00 to 3.00 to 1.00 to Sept. 30, 2024; and extends the date at which the required term loan amortization payments increase from 2.5% per annum to 5% per annum from June 30, 2023 to Dec. 31, 2024.
The borrower used proceeds from the term A loan to repay debt under the existing credit agreement and to pay related transaction costs and will use all remaining proceeds for working capital and other general corporate purposes.
Borrowings from the revolver may be used for working capital and other general corporate purposes.
Open Lending is an Austin, Tex.-based provider of lending enablement and risk analytics solutions to financial institutions.
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