Business Context and Reporting Period
Company: PubMatic, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 4, 2021
Event: Entry into a Material Definitive Agreement regarding a credit facility amendment.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It details specific terms of a credit facility:
- Revolving Credit Limit: Lesser of $25.0 million or 80% of eligible accounts receivable (less reserves and outstanding advances).
- Interest Rate: Variable rate equal to the greater of the prime rate or 3.25%.
- Unused Fee: 0.40% per annum on the average unused portion (payable quarterly if the average closing balance is under $5.0 million).
- Maturity Date: June 6, 2024.
- Lender: Silicon Valley Bank.
Material Changes
The Company entered into a Fourth Amendment to its Third Amended and Restated Loan and Security Agreement. This amendment modifies the existing credit facility terms as described above. No prior period financial comparisons are provided in this document.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking guidance, outlook, or management discussion regarding future performance.
Risks and Contingencies: The filing notes that the description of the agreement is qualified by the full text of the Fourth Amendment (Exhibit 10.1). The filing does not explicitly list new risks or contingencies beyond the obligations inherent in the amended loan agreement.
Investor Verification Checklist
- Verify the current balance of eligible accounts receivable to determine the actual borrowing capacity under the 80% limit.
- Review the full text of the Fourth Amendment (Exhibit 10.1) for covenants, default provisions, and reserve calculations not detailed in the summary.
- Confirm the current prime rate to calculate the effective interest cost on any outstanding advances.
- Assess the impact of the 0.40% unused fee on liquidity if the company maintains a low drawdown on the facility.