nCino gets $100 million secured revolver to help fund acquisition

By Mary-Katherine Stinson

Lexington, Ky., March 18 – nCino, Inc. on March 17 entered a second amendment to its credit agreement, which is providing a senior secured revolving credit facility of $100 million with a letter-of-credit sublimit of $7.5 million, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings under the facility bear interest at term SOFR, subject to a 0% floor, plus a margin of 231.25 basis points, with the margin subject to a step down based on achievement of a certain leverage ratio.

There is an unused commitment fee of 30 bps, also with to a step down based on achievement of a certain leverage ratio. Additionally, there are customary letter-of-credit fees.

Borrowings may be prepaid without penalty and may be reborrowed.

The financial covenant requires the company and its subsidiaries on a consolidated basis to maintain a consolidated senior secured leverage ratio not exceeding 2.50:1.00 at the end of any fiscal quarter and a consolidated interest coverage ratio not less than 3.00:1.00 at the end of any fiscal quarter, beginning with the second quarter of fiscal year 2025.

The facility is guaranteed by the company and each of its current and future material domestic subsidiaries and secured by substantially all of the borrower’s and guarantor’s personal property, including a pledge of all of the borrower’s capital stock, the capital stock of all of the company’s domestic subsidiaries and 65% of the capital stock of foreign subsidiaries that are directly owned by the borrower or a guarantor.

A portion of the funds available under the amendment will be used to fund the $75 million purchase price of DocFox, Inc. The acquisition is expected to close in March.

The facility matures on March 17, 2029.

Bank of America, NA is the lender.

The amendment modifies the original credit agreement dated Feb. 11, 2022.

nCino is a Wilmington, N.C.-based financial technology company.

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