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Dynatrace Announces New $400 Million Revolving Credit Facility And Repayment of Remaining Term Loan B Debt
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Rhea-AI Summary
Dynatrace (NYSE: DT) has successfully closed a new $400 million five-year senior secured revolving credit facility, replacing an earlier $60 million facility. The new facility was finalized on December 2, 2022 and provides increased financial flexibility at lower costs, as stated by CFO Jim Benson. Concurrently, Dynatrace repaid its remaining $221 million Term Loan B debt using its cash balance of $563 million. The company currently has no outstanding funded debt obligations, affirming its strong financial position.
Positive
Secured a new $400 million credit facility to enhance financial flexibility.
Successfully repaid $221 million Term Loan B debt, strengthening balance sheet.
No outstanding funded debt obligations, indicating solid financial health.
Negative
None.
WALTHAM, Mass.--(BUSINESS WIRE)--
Software intelligence company Dynatrace (NYSE: DT) today announced the closing of a new $400 million, five-year senior secured revolving credit facility through a syndicate of banks led by BMO Harris Bank N.A., with Dynatrace LLC, a wholly-owned subsidiary of Dynatrace, Inc., as borrower. This new facility, entered into on December 2, 2022, replaces a $60 million revolving credit facility, which was set to mature on August 23, 2023.
In conjunction with the closing of the new revolving credit facility, Dynatrace repaid the remaining balance of its Term Loan B debt, which had an outstanding principal balance of $221 million as of September 30, 2022. The repayment was funded with a portion of the company’s cash balance, which stood at $563 million as of September 30, 2022. Dynatrace has no other funded debt obligations outstanding at this time.
“We are extremely pleased with the completion of this transaction as it provides us with increased financial flexibility at substantially lower costs,” said Jim Benson, Chief Financial Officer at Dynatrace. “Significant demand for the transaction resulted in an over-subscription, which we believe is a testament to our balanced business model that delivers strong growth, profitability and free cash flow.”
About Dynatrace
Dynatrace provides software intelligence to simplify cloud complexity and accelerate digital transformation. With automatic and intelligent observability at scale, our all-in-one platform delivers precise answers about the performance and security of applications, the underlying infrastructure, and the experience of all users to enable organizations to innovate faster, collaborate more efficiently, and deliver more value with dramatically less effort. That’s why many of the world’s largest enterprises trust Dynatrace® to modernize and automate cloud operations, release better software faster, and deliver unrivalled digital experiences.
