Summary by Futu AI
On May 17, 2024, Cloudflare, Inc. entered into a significant financial agreement by securing a $400 million senior secured revolving loan facility, with Citibank, N.A. serving as the administrative and collateral agent. This facility includes sublimits for letters of credit and swingline borrowings, each at $30 million, and offers an option to increase the commitments by up to $150 million under certain conditions. The funds are intended for working capital and general corporate purposes, with the flexibility to prepay or reborrow prior to the facility's maturity date of May 17, 2029. The agreement also outlines provisions for an earlier maturity date under specific circumstances related to the company's convertible notes. Cloudflare is subject to customary fees, interest rates that vary based on the company's leverage ratio, and is required to maintain certain financial ratios. The credit facility is guaranteed by certain Cloudflare subsidiaries and secured by most of the company's personal property. The agreement includes standard covenants and events of default, with remedies available to the lenders including acceleration of obligations.