nCino, Inc. Form 8-K Summary
Business Context and Reporting Period
nCino, Inc. filed this Current Report on February 14, 2022, reporting an agreement entered into on February 11, 2022. The filing concerns a new senior secured revolving credit facility and does not report operating results for a fiscal period.
Financial and Liquidity Terms
| Item | Reported terms |
|---|---|
| Credit facility | Senior secured revolving facility of up to $50.0 million |
| Letter-of-credit sublimit | $7.5 million; issued letters of credit reduce remaining availability |
| Maturity | February 11, 2024 |
| Interest options | Base rate plus a 0.00% margin, or BSBY plus a 1.00% margin; applicable floors are 0.00% |
| Unused commitment fee | 0.25% of average daily unutilized commitments |
| Repayment and reborrowing | Amounts may be repaid at any time without penalty and reborrowed |
| Liquidity covenant | Consolidated Liquidity must be at least $50.0 million |
Consolidated Liquidity is calculated using 100% of unrestricted and unencumbered cash held by the company and domestic subsidiaries, 75% of such cash held by foreign subsidiaries, and the lesser of facility availability or $25.0 million. The filing does not state whether any amounts were drawn at closing or the company’s liquidity balance at the reporting date.
Material Changes Versus the Prior Comparable Period
The material change disclosed is the establishment of the new revolving credit facility with Bank of America, N.A. The filing text does not provide prior-period financial statements or comparable operating metrics.
Management Commentary, Risks, and Unusual Items
- The facility is guaranteed by nCino and its current and future material domestic subsidiaries.
- The facility is secured by substantially all personal property of the borrower and guarantors, subject to customary exceptions, including specified pledges of domestic and foreign subsidiary equity.
- The Credit Agreement contains customary representations, affirmative and negative covenants, financial covenants, and events of default.
- Potential risks include interest-rate variability, the liquidity covenant, restrictions under the credit agreement, and the pledge of company and subsidiary assets.
- The filing provides no revenue, profit, cash-flow, margin, debt-balance, guidance, or broader business-outlook information.
Key Facts Investors Should Verify
- Whether the facility was drawn and the amount of outstanding borrowings and letters of credit.
- Compliance with the $50.0 million Consolidated Liquidity covenant.
- Applicable interest-rate benchmarks and the company’s exposure to changes in BSBY or other base rates.
- Any amendments, waivers, defaults, or extensions before the February 11, 2024 maturity date.
- The complete Credit Agreement, filed as Exhibit 10.1, for detailed covenants, collateral provisions, and events of default.