Pinterest enters five-year $400 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 27 – Pinterest Inc. entered into an amended and restated five-year $400 million revolving credit facility on Oct. 25, replacing its previous $500 million revolver it entered in November of 2018, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent.

There is an accordion option for up to $405 million of additional commitments.

Borrowings bear interest at SOFR plus an adjustment of 10 basis points plus a a margin of 150 bps. There is a fee on unused commitments of 15 bps per annum.

There is a $75 million sublimit for letters of credit, and Pinterest is required to pay a fee that accrues at 12.5 bps per annum on the average aggregate daily maximum amount available to be drawn under any outstanding letters of credit.

The company must comply with a maximum net leverage ratio of consolidated debt to consolidated EBITDA no greater than 3.5 to 1.0, subject to an increase up to 4.0 to 1.0 for a certain period following an acquisition.

The obligations under the credit facility are secured by liens on substantially all of Pinterest’s domestic assets, including certain domestic intellectual property assets.

The image sharing and social media service is based in San Francisco.

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