Clearwater Analytics Announces Launch of $800 Million Term Loan B

Rhea-AI Summary

Clearwater Analytics Holdings (NYSE: CWAN) has announced the launch of a proposed $800 million senior secured Term Loan B Facility, due 2033. The company plans to use the proceeds from this Term Loan, along with equity issuance, to finance its previously announced acquisition of Enfusion, Inc. (NYSE: ENFN). The total transaction price for the Enfusion acquisition is approximately $1.5 billion. Clearwater Analytics is a leading global provider of SaaS-based investment management, accounting, reporting, and analytics solutions.

Positive

• Strategic acquisition of Enfusion to expand market presence
• Successful securing of substantial financing through Term Loan B

Negative

• Significant debt burden with $800M Term Loan
• Potential shareholder dilution from planned equity issuance
• Large capital commitment of $1.5B for acquisition

Insights

Financial Analyst

The announcement of an $800 million Term Loan B facility marks a pivotal financing strategy for Clearwater Analytics' ambitious acquisition of Enfusion. The choice of a Term Loan B structure is particularly noteworthy, as it typically offers more flexible terms and fewer covenants compared to traditional bank loans, providing CWAN with operational flexibility during the post-acquisition integration period.

The financing structure, combining debt and equity, reflects a balanced approach to capital allocation. With the total acquisition value at $1.5 billion, the $800 million debt component suggests a leverage ratio that aligns with industry standards for strategic tech acquisitions. The extended maturity until 2033 provides important breathing room for integration and synergy realization.

Several key implications emerge from this financing decision:

• The Term Loan B's institutional investor focus typically allows for larger facility sizes and longer tenors compared to traditional bank loans
• The combination of debt and equity funding helps maintain a healthier balance sheet while minimizing equity dilution
• The 8-year term provides substantial runway for integration and value creation before refinancing becomes necessary
• This financing approach suggests confidence in future cash flow generation to service the debt obligations

This financing package represents a significant milestone in CWAN's evolution, positioning the company for expanded market presence in the investment management solutions space. The structure indicates careful consideration of capital costs, operational flexibility and long-term strategic objectives.

BOISE, Idaho--(BUSINESS WIRE)-- Clearwater Analytics Holdings, Inc. (NYSE: CWAN), (“Clearwater” or the “Company”), a leading worldwide provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today announced that it is launching a proposed senior secured Term Loan B Facility due 2033 in an aggregate principal amount of $800.0 million (the “Term Loan”).

Clearwater intends to use proceeds from the Term Loan, together with the issuance of equity, to fund the previously announced acquisition of Enfusion, Inc. (NYSE: ENFN) (“Enfusion”) for a total transaction price of approximately $1.5 billion.

About Clearwater Analytics

Clearwater Analytics (NYSE: CWAN), a global, industry-leading SaaS solution, automates the entire investment lifecycle. With a single instance, multi-tenant architecture, Clearwater offers award-winning investment portfolio planning, performance reporting, data aggregation, reconciliation, accounting, compliance, risk, and order management. Each day, leading insurers, asset managers, corporations, and governments use Clearwater’s trusted data to drive efficient, scalable investing on more than $7.3 trillion in assets spanning traditional and alternative asset types. Additional information about Clearwater can be found at clearwateranalytics.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the terms of the proposed Term Loan. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “aim,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Company’s control, that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 filed with the SEC on November 6, 2024 and in other periodic reports filed by the Company with the SEC. These filings are available at www.sec.gov and on the Company’s website. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release and should not be relied upon as representing the Company’s expectations or beliefs as of any date subsequent to the time they are made. The Company does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250203262583/en/

Joon Park

Investor Relations

+1 415-906-9242

investors@clearwateranalytics.com



Claudia Cahill

Media Relations

+1 703-728-1221

press@clearwateranalytics.com

Source: Clearwater Analytics Holdings, Inc.

FAQ

What is the size and purpose of Clearwater Analytics' (CWAN) new Term Loan B?

Clearwater Analytics (CWAN) is launching an $800 million Term Loan B Facility due 2033 to partially fund the acquisition of Enfusion.

How much is Clearwater Analytics (CWAN) paying to acquire Enfusion?

Clearwater Analytics is acquiring Enfusion for approximately $1.5 billion in total transaction value.

How is Clearwater Analytics (CWAN) financing the Enfusion acquisition?

Clearwater Analytics is financing the Enfusion acquisition through a combination of an $800 million Term Loan B and equity issuance.

When does Clearwater Analytics' (CWAN) new Term Loan B mature?

The Term Loan B Facility is due in 2033.