Roku gets $75 million revolver, $75 million delayed-draw term loan

By Wendy Van Sickle

Columbus, Ohio, Feb. 21 – Roku, Inc. entered into a credit agreement on Feb. 19 providing for a four-year $75 million revolving credit facility and a four-year $75 million delayed-draw term loan A facility, according to an 8-K filing with the Securities and Exchange Commission.

There is also an uncommitted incremental facility of up to between $50 million and $75 million, depending on a formula based on leverage and other factors.

Morgan Stanley Senior Funding, Inc. is the administrative agent.

Borrowings under the term loan A facility may be drawn for up to nine months immediately following the closing date.

No borrowings were drawn under the credit agreement on the closing date.

On or around the closing date, except for certain letters of credit, cash collateralized by $26.3 million, Roku also repaid all outstanding obligations under its amended and restated loan and security agreement, entered into with Silicon Valley Bank on Nov. 18, 2014.

Borrowings bear interest at Libor plus 200 basis points, with step-downs based on Roku’s secured leverage ratio.

Loans under the term loan A facility will amortize in equal quarterly installments beginning on the last day of the fiscal quarter ending after the date of the initial borrowing in an annual amount equal to 1.25% of the drawn principal amount on or prior to Dec. 31, 2021 and 2.5% thereafter, with any balance due at maturity.

Based in Los Gatos, Calif., Roku manufactures digital media players that allow customers to access streamed video or audio services through televisions.

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