Rubicon Technologies enters new credit facilities, modifies old

Chicago, June 8 – Rubicon Technologies, Inc. undertook several loan transactions on June 7, according to an 8-K filing with the Securities and Exchange Commission.

First, the company signed for a $75 million term loan credit agreement with Acquiom Agency Services LLC as agent.

The maturity date is June 7, 2025, but subject to certain conditions may be extended to June 7, 2026.

Potentially, lenders may convert the loan into common stock starting on Oct. 7.

Interest will initially be at SOFR plus 875 basis points, with a 50 bps stepdown if an ESG metric is satisfied.

Second, Rubicon Technologies Holdings, LLC and related entities entered into an asset-backed revolving credit facility for $90 million with Midcap Funding IV Trust.

Interest will be at SOFR plus 425 bps initially, stepping down to 395 bps if the borrowers can show a fixed charge coverage ratio greater than 1.1x for certain periods.

The loan has a three-year tenor, subject to a springing maturity date if the term loan is still outstanding.

The company also modified its $20 million subordinated term loan agreement with Mizzen Capital LP from Dec. 22, 2021.

Interest will now be decreased to 11% from 14%.

There is a new covenant for the borrowers to maintain certain levels of liquidity.

Certain restrictions regarding capital expenditures by the credit parties under the existing subordinated term loan credit agreement have been removed.

Further, paid-in-kind interest may be permitted.

Lexington, Ky.-based Rubicon is a mobile app developer that provides on-demand trash pickup.

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