Business Context and Reporting Period
Company: Upland Software, Inc.
Filing Type: Form 8-K (Current Report)
Date: June 11, 2019
Business Description: A leading cloud-based enterprise work management software provider.
Key Financial Metrics
Debt and Liquidity:
- Existing Credit Facility: $400 million total capacity.
- Outstanding Balance: $311.4 million as of June 11, 2019.
- Proposed New Facilities: A $350 million senior secured term loan B and a $30 million senior secured revolving credit facility.
Material Changes
The company has commenced a process to replace its existing $400 million credit facility with a new debt structure consisting of a $350 million term loan and a $30 million revolving facility. This represents a material change in the company's capital structure and debt obligations.
Guidance, Outlook, and Risks
Management Commentary: The company is actively negotiating with lenders to replace its current credit facility.
Contingencies: The availability, amount, and terms of the potential new credit facilities are subject to negotiation with lenders and are not yet finalized.
Risks: Failure to secure the new facilities on acceptable terms could impact liquidity and operations.
Investor Verification Checklist
- Confirm the final terms and interest rates of the proposed $350 million term loan and $30 million revolving facility.
- Verify the status of the negotiation with lenders and the expected closing date.
- Review the impact of the new debt structure on the company's leverage ratios and liquidity position.
- Check for any covenants or restrictions associated with the new senior secured facilities.