Groupon gets three-year $250 million restated revolving credit line

By Marisa Wong

Morgantown, W.Va., July 1 – Groupon, Inc. entered into an amended and restated credit agreement on June 29 for a three-year $250 million senior secured revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent and bookrunner. The joint lead arrangers are JPMorgan Chase Bank, Morgan Stanley Senior Funding, Inc. and Bank of the West.

Borrowings will bear interest at Libor plus an applicable spread based on the company’s leverage ratio. The applicable spread will range from 150 basis points to 225 bps. Additionally, the company will pay a commitment fee ranging from 25 bps to 40 bps, also based on the leverage ratio.

The initial rate is Libor plus 175 bps with a 30 bps commitment fee.

The credit agreement requires the company to maintain a maximum funded debt to EBITDA ratio, a maximum senior secured indebtedness to EBITDA ratio, a minimum fixed-charge coverage ratio, unrestricted cash of not less than $400 million and a minimum liquidity balance (including any undrawn amounts under the credit facility) of at least 70% of the company’s accrued merchant and supplier payables balance.

The credit agreement restates the company’s prior $250 million credit facility. No amounts have been drawn under the new facility as of Friday.

The Chicago company operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount.

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