Yext Secures $400M in New Credit Facilities

Ticker: YEXT · Form: 8-K · Filed: Jul 29, 2024 · CIK: 1614178

Yext, INC. 8-K Filing Summary
FieldDetail
CompanyYext, INC. (YEXT)
Form Type8-K
Filed DateJul 29, 2024
Risk Levelmedium
Pages3
Reading Time3 min
Key Dollar Amounts$0.001, $35,000,000
Sentimentbullish

Sentiment: bullish

Topics: financing, debt, credit-facility

TL;DR

Yext just locked in $400M in new credit lines with JPM, maturing in 2029. Big liquidity boost.

AI Summary

On July 26, 2024, Yext, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement, with JPMorgan Chase Bank, N.A. as administrative agent. This agreement establishes a new $250 million revolving credit facility, which matures on July 26, 2029. The company also entered into a Term Loan Agreement with the same agent and lenders, securing a $150 million term loan facility.

Why It Matters

This significant financing provides Yext with substantial liquidity, potentially enabling strategic investments, acquisitions, or debt repayment, thereby strengthening its financial position.

Risk Assessment

Risk Level: medium — While new credit facilities can be positive, the terms and covenants associated with these agreements, as well as the company's ability to service the debt, present potential risks.

Key Numbers

Key Players & Entities

FAQ

What are the specific interest rates and fees associated with the new credit facilities?

The filing does not specify the exact interest rates or fees for the Credit Agreement or the Term Loan Agreement, but notes that they are subject to market conditions and credit ratings.

What is the purpose of these new credit facilities for Yext?

The filing indicates the facilities are intended to provide Yext with financial flexibility for general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions.

Are there any significant covenants or restrictions Yext must adhere to under these new agreements?

Yes, the Credit Agreement and Term Loan Agreement contain customary covenants, including financial covenants such as maintaining certain leverage ratios and liquidity levels.

Who are the other lenders involved in these credit facilities besides JPMorgan Chase Bank, N.A.?

The filing lists multiple lenders participating in both the revolving credit facility and the term loan facility, in addition to JPMorgan Chase Bank, N.A. as the administrative agent.

What is the impact of these new facilities on Yext's existing debt obligations?

The filing does not explicitly detail the impact on existing debt, but the new facilities are expected to enhance Yext's overall liquidity and financial management capabilities.

Filing Stats: 799 words · 3 min read · ~3 pages · Grade level 11 · Accepted 2024-07-29 16:27:46

Key Financial Figures

Filing Documents

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement On July 26, 2024, Yext, Inc. (the "Company") entered into a third amendment ("Amendment No. 3") to that certain Credit Agreement, dated March 11, 2020, by and among the Company, as borrower, Yext Holdings, LLC, as guarantor, the lenders from time to time party thereto, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as administrative agent, collateral agent, issuing lender and swingline lender (as amended by that certain First Amendment to Credit Agreement and Guarantee and Collateral Agreement dated as of January 29, 2021, and as further amended by that certain Second Amendment to Credit Agreement dated as of December 22, 2022, the "Credit Facility"). Amendment No. 3 amends the Credit Facility to, among other things (i) amend the interest rate applicable to loans under the Credit Facility, (ii) replace the consolidated quick ratio and recurring revenue growth rate financial covenants with consolidated total leverage ratio and minimum liquidity financial covenants, and (iii) make certain other revisions as more fully set forth therein. As amended, the revolving loans bear interest, at the Company's election, at an annual rate based on SOFR or a base rate. Loans based on SOFR shall bear interest at a rate between SOFR plus 1.75% and SOFR plus 2.25%, depending on the Company's consolidated total leverage ratio and subject to a SOFR floor of 1.00%. Loans based on the base rate shall bear interest at a rate between the base rate minus 1.25% and the base rate minus 0.75%, depending on the Company's consolidated total leverage ratio. As amended, the Credit Facility will include financial covenants requiring the Company to maintain minimum liquidity of $35,000,000 at all times and a consolidated total leverage ratio of no greater than 3.00 to 1.00, tested on a quarterly basis. The description of Amendment No. 3 is qualified in its entirety by reference to the text of Amendment No. 3, whic

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 10.1 Third Amendment to Credit Agreement, dated as of July 26, 2024, by and among Yext, Inc., Yext Holdings, LLC, the lenders from time to time party thereto, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as administrative agent, collateral agent, issuing lender and swingline lender 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. YEXT, INC. By: /s/ Darryl Bond Darryl Bond Chief Financial Officer Date: July 26, 2024

View Full Filing

View this 8-K filing on SEC EDGAR

View on Read The Filing