Alkami Technology amends, restates $125 million credit facility

By William Gullotti

Buffalo, N.Y., May 2 – Alkami Technology, Inc. entered into an amended and restated $125 million credit agreement with Silicon Valley Bank as administrative agent on April 29, according to an 8-K filing with the Securities and Exchange Commission.

The facility, maturing April 29, 2025, is divided into an $85 million term loan and a $40 million revolver.

The revolver also has a $50 million accordion feature.

Obligations under the amended agreement are guaranteed by Alkami’s subsidiaries and secured by substantially all assets of the company and its subsidiaries.

Borrowings under the agreement will bear interest at SOFR plus 300 basis points to 350 bps, depending on the applicable recurring revenue leverage ratio.

Revolver borrowings may be voluntarily prepaid and re-borrowed.

Principal payments on the term loan are due quarterly starting June 30, 2023. The initial $1.1 million installment amount will continue through March 31, 2024. From June 30, 2024 until maturity, the installment amount increases to approximately $2.1 million. Once repaid or prepaid, the term loan may not be re-borrowed.

In addition to serving as administrative agent, Silicon Valley Bank is also the issuing lender, swingline lender and joint lead arranger.

Also serving as joint lead arranger is Comerica Bank.

CIBC is the documentation agent.

Alkami Technology is a cloud-based digital banking platform.

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