Progress Software enters up to $150 million revolving credit facility

By Marisa Wong

Madison, Wis., Aug. 18 - Progress Software Corp. entered into a credit agreement on Aug. 15 for a revolving credit facility of up to $150 million, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The revolving credit facility may be increased by up to an additional $75 million if the lenders are willing to make such increased commitments. The revolver has sublimits for swingline loans up to $20 million and for the issuance of standby letters of credit up to $25 million.

J.P. Morgan Securities LLC is the bookrunner and lead arranger. JPMorgan Chase Bank, NA is the administrative agent, and Wells Fargo Bank, NA and RBS Citizens, NA are the syndication agents.

Interest will be 125 basis points to 175 bps above the Eurodollar rate for Eurodollar-based borrowings or 25 bps to 75 bps above the base rate for base rate borrowings, in each case based on Progress' leverage ratio. Progress can also borrow certain foreign currencies at rates set in the same range above the respective Libor, based on the leverage ratio.

There is a quarterly commitment fee on the undrawn portion of the facility ranging from 0.25% to 0.35% per year, also based on the company's leverage ratio.

At closing, the applicable interest rate and commitment fee was at the lowest rate in each range.

Revolving loans may be borrowed, repaid and reborrowed until Aug. 15, 2016, at which time all borrowed amounts must be repaid. Interest is payable quarterly for base rate loans and at the end of each interest rate period, or at each three-month interval if the interest period is greater than three months, for Libor loans.

Progress may prepay the loans or terminate or reduce the commitments at any time, subject to certain conditions and reimbursement of certain costs in the case of Libor loans.

The credit agreement contains certain customary covenants and requires that Progress comply with a consolidated interest coverage ratio and a consolidated leverage ratio.

The agreement also includes various events of default. If an event of default occurs, obligations under the credit agreement may be accelerated, and a default interest rate will apply. The default interest rate would equal 200 bps above the applicable interest rate.

Progress said it will use the facility for general corporate purposes, including acquisitions of other businesses, and for working capital.

Progress Software provides application infrastructure software for the development, deployment, integration and management of business applications. The company is located in Bedford, Mass.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.