M
ME NEWS
06 Mar 2025, 05:23
NetApp Enters Into $1 Billion Credit Agreement
San Jose, California – March 5, 2025 – NetApp, Inc. (NASDAQ: NTAP) announced that it has entered into a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. This agreement amends and extends the company’s previous credit facility.
Key Terms of the Credit Agreement
$1 billion revolving unsecured credit facility with a $50 million sublimit for issuing letters of credit.
Maturity Date: March 5, 2030, with an option for two additional one-year extensions, subject to conditions.
Usage: The facility will be used for general corporate purposes and as liquidity support for NetApp’s commercial paper program.
Interest Rates: Based on Moody’s and Standard & Poor’s ratings, with:
Base rate loans carrying a 0% to 0.325% spread.
SOFR rate loans carrying a 0.805% to 1.325% spread.
Currencies: Borrowings can be made in U.S. dollars or other agreed currencies.
Interest Payments:
Quarterly for base rate loans.
End of term for SOFR loans (or every three months for longer periods).
Prepayment: Allowed without penalty.
Financial and Covenant Requirements
NetApp must comply with a maximum leverage ratio, measured quarterly.
Standard restrictions apply on subsidiary debt, liens, asset sales, mergers, and dissolution.
Events of Default: Include payment failures, covenant breaches, cross defaults, bankruptcy events, judgments, ERISA violations, and changes in control.
Expansion and Lender Relationships
NetApp has the option to increase the credit facility by $500 million, raising the total commitment to $1.5 billion.
Some lenders and their affiliates have engaged in investment banking and other transactions with NetApp and may continue to do so.
No Current Borrowings
As of March 5, 2025, NetApp has not drawn any funds or issued any letters of credit under this facility.
This agreement strengthens NetApp’s financial flexibility and liquidity, positioning it for future growth and strategic initiatives.
San Jose, California – March 5, 2025 – NetApp, Inc. (NASDAQ: NTAP) announced that it has entered into a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. This agreement amends and extends the company’s previous credit facility.
Key Terms of the Credit Agreement
$1 billion revolving unsecured credit facility with a $50 million sublimit for issuing letters of credit.
Maturity Date: March 5, 2030, with an option for two additional one-year extensions, subject to conditions.
Usage: The facility will be used for general corporate purposes and as liquidity support for NetApp’s commercial paper program.
Interest Rates: Based on Moody’s and Standard & Poor’s ratings, with:
Base rate loans carrying a 0% to 0.325% spread.
SOFR rate loans carrying a 0.805% to 1.325% spread.
Currencies: Borrowings can be made in U.S. dollars or other agreed currencies.
Interest Payments:
Quarterly for base rate loans.
End of term for SOFR loans (or every three months for longer periods).
Prepayment: Allowed without penalty.
Financial and Covenant Requirements
NetApp must comply with a maximum leverage ratio, measured quarterly.
Standard restrictions apply on subsidiary debt, liens, asset sales, mergers, and dissolution.
Events of Default: Include payment failures, covenant breaches, cross defaults, bankruptcy events, judgments, ERISA violations, and changes in control.
Expansion and Lender Relationships
NetApp has the option to increase the credit facility by $500 million, raising the total commitment to $1.5 billion.
Some lenders and their affiliates have engaged in investment banking and other transactions with NetApp and may continue to do so.
No Current Borrowings
As of March 5, 2025, NetApp has not drawn any funds or issued any letters of credit under this facility.
This agreement strengthens NetApp’s financial flexibility and liquidity, positioning it for future growth and strategic initiatives.
