Sprout Social enters $100 million five-year revolving facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 3 – Sprout Social, Inc. entered into a credit agreement on Aug. 1 with MUFG Bank Ltd. as administrative agent that provides for a $100 million senior secured revolving credit facility maturing on Aug. 1, 2028, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at SOFR+ 10 basis points CSA plus a margin ranging from 275 basis points to 325 bps, and there is a fee on undrawn commitments of 30 bps or 35 bps, both based on the company’s liquidity.

The credit agreement contains financial covenants as to minimum liquidity and minimum recurring revenue growth.

Borrowings may be used to finance acquisitions and other investments and for general corporate purposes.

The software company geared toward social media is based in Chicago.

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