Upwork amends loan agreement to modify covenants following IPO

By Sarah Lizee

Olympia, Wash., March 19 – Upwork Inc. amended its loan and security agreement with Silicon Valley Bank on Monday to adjust covenants under the agreement, according to an 8-K filing with the Securities and Exchange Commission.

The company said the amendment was entered into to reflect the impact of its initial public offering, including the increase in Upwork’s cash and cash equivalents as a result of the proceeds received in connection with the initial public offering.

The amendment, among other changes, modifies the adjusted quick ratio financial covenant to provide that Upwork will maintain an adjusted quick ratio of 1.75 to 1.00, from 1.30 to 1.00 previously and reduces the frequency with which Upwork is required to provide certain financial information to Silicon Valley Bank during periods in which it maintains an adjusted quick ratio of 2.50 to 1.00.

The amendment also eliminates the minimum EBITDA covenant with which Upwork was required to comply and eliminates Silicon Valley Bank's audit rights to inspect Upwork's books, records and collateral.

Upwork, formerly Elance-oDesk, is a global freelancing platform where businesses and independent professionals connect and collaborate remotely. The company has headquarters in Redwood City, Calif.

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