Cornerstone Completes Repricing of Term Loan B Facility

Rhea-AI Summary

Cornerstone OnDemand, Inc. (NASDAQ: CSOD) has successfully repriced its senior secured term loan facility, reducing the interest rate from LIBOR plus 4.25% to LIBOR plus 3.25%. The outstanding loan value decreased from $850 million to $830 million. This repricing is expected to save approximately $9 million annually in cash interest expenses, enhancing liquidity for strategic growth initiatives. The maturity date remains April 22, 2027. Morgan Stanley acted as Lead Arranger for the transaction.

Positive

• Repricing of Term Loan B reduced interest expense by approximately $9 million annually.
• Outstanding loan value decreased from $850 million to $830 million, reflecting improved financial health.
• Strengthened liquidity position to support growth initiatives.

Negative

• None.

Cornerstone OnDemand, Inc. (NASDAQ: CSOD), a global leader in people development solutions, today announced it has successfully completed a repricing of its senior secured term loan facility (the “Term Loan B”).

Prior to the repricing, the Term Loan B had an outstanding value of $850 million (the original principal value was $1,005 million) and was repriced to bear interest at LIBOR plus 3.25% with a LIBOR floor of 0%, which represents a 100 basis point reduction compared to the prior interest rate of LIBOR plus 4.25% with a LIBOR floor of 0%. All other material terms of the Term Loan B remain unchanged, including the maturity date of April 22, 2027. After the repricing, the outstanding value of the loan is $830 million.

“We are pleased with the results of this repricing transaction, which we believe to be a reflection of our strong operational performance in 2020 and continued progress towards reducing leverage and enhancing the company’s liquidity position,” said Chirag Shah, Chief Financial Officer, Cornerstone. “At current LIBOR and debt levels, we expect the improved pricing to save approximately $9 million of annual cash interest expense and enhance our ability to invest in key strategic priorities, including growth initiatives and further deleveraging.”

Morgan Stanley acted as Lead Arranger and Bookrunner for the debt repricing.

About Cornerstone
Cornerstone is a premier people development company. We believe people can achieve anything when they have the right development and growth opportunities. We offer organizations the technology, content, expertise and specialized focus to help them realize the potential of their people. Featuring comprehensive recruiting, personalized learning, modern training content, development-driven performance management and holistic employee data management and insights, Cornerstone’s people development solutions are used by more than 6,000 customers of all sizes, spanning more than 75 million users across over 180 countries and nearly 50 languages. Learn more at https://www.cornerstoneondemand.com/.

Forward-looking Statements
The statement in this press release regarding the expected cost savings from the repricing is a forward-looking statement reflecting Cornerstone’s expectation as of the date of this press release. Subsequent events may cause this expectation to change, and Cornerstone disclaims any obligation to update the forward-looking statement in the future, except as required by law. This forward-looking statement is subject to known and unknown risks and uncertainties that may cause actual results to differ materially from Cornerstone’s current expectation. Important factors that could cause actual results to differ materially from those anticipated in this forward-looking statement include, but are not limited to: increases in the LIBOR and/or deviations from the principal payment schedule.

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FAQ

What is the recent announcement by Cornerstone OnDemand regarding its debt?

Cornerstone OnDemand announced a repricing of its senior secured term loan facility, reducing the interest rate and outstanding loan value.

How much is Cornerstone OnDemand saving from the repriced loan?

The repricing of the loan is expected to save approximately $9 million in annual cash interest expenses.

What are the new terms of Cornerstone OnDemand's Term Loan B?

The new interest rate is LIBOR plus 3.25%, with a maturity date of April 22, 2027.

Who acted as Lead Arranger for Cornerstone OnDemand's debt repricing?

Morgan Stanley served as the Lead Arranger and Bookrunner for the debt repricing.

What is the current outstanding value of Cornerstone OnDemand's Term Loan B after repricing?

After repricing, the outstanding value of the loan is $830 million.