Trade Desk gets $450 million five-year replacement revolver

By Marisa Wong

Los Angeles, June 17 – Trade Desk, Inc. entered into a loan and security agreement on June 15 for a $450 million revolving loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver, scheduled to terminate on June 15, 2026, includes a $20 million sublimit for swingline borrowings and a $15 million sublimit for letters of credit.

In some cases the company has the right to increase the facility by up to $300 million.

Loans bear interest at Libor plus an applicable margin ranging from 125 basis points to 225 bps, depending on the company’s leverage ratios.

The fee for undrawn amounts ranges, based on leverage, from 20 bps to 35 bps.

The loan agreement requires the company to maintain compliance with a maximum ratio of consolidated funded debt to consolidated EBITDA of 3.50 to 1.00.

At closing, the company terminated its second amended and restated loan agreement dated Oct. 26, 2018. At the time of termination, the credit agreement consisted of a $150 million revolver set to terminate on May 9, 2022.

The syndicate of banks for the new credit agreement was led by JPMorgan Chase Bank, NA as agent.

JPMorgan Chase Bank, Citibank, NA, Silicon Valley Bank and U.S. Bank NA acted as joint bookrunners, joint lead arrangers and co-syndication agents.

The advertising technology company is based in Ventura, Calif.

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