Progress Announces Amended Credit Facility
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Insights
The establishment of a new $900 million revolving credit facility is a significant financial maneuver that enhances Progress's capital structure. This increased liquidity can be a catalyst for strategic initiatives such as acquisitions, R&D investments, or debt refinancing. The lack of outstanding loans under the new facility indicates a conservative approach to leverage, which could be viewed favorably by investors concerned about overextension. Long-term maturity of the credit line until 2029 provides a stable financing option, potentially reducing the risk of refinancing in the near term, which can be particularly advantageous in a volatile interest rate environment.
Progress's strategic positioning through the new credit facility aligns with its Total Growth Strategy, signaling to the market a readiness for accretive acquisitions. This move can be interpreted as a proactive approach to capitalizing on market opportunities, potentially driving up the company's valuation. The involvement of prominent financial institutions as agents and arrangers underscores the credibility of the deal. However, the impact on the stock price will depend on how effectively the company deploys the capital. Investors should monitor the company's acquisition targets and the integration outcomes to assess the potential for enhanced market share and revenue growth.
The transition to an Amended Credit Agreement from the existing secured credit facilities may involve complex contractual negotiations and compliance considerations. It is essential to scrutinize the covenants and terms of the agreement, as they can significantly affect the company's operational flexibility. For instance, restrictive covenants could limit Progress's ability to engage in certain transactions or distribute dividends. Legal due diligence is crucial to ensure that the terms of the credit facility align with the company's strategic objectives while maintaining regulatory compliance and protecting shareholders' interests.
New
BURLINGTON, Mass., March 07, 2024 (GLOBE NEWSWIRE) -- Progress (NASDAQ: PRGS), the trusted provider of infrastructure software, today announced that it has entered into a Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which provides a revolving credit facility in an aggregate principal amount of
Progress CFO Anthony Folger stated, “This new credit facility provides more scale and flexibility, both of which are important to support Progress’ continued growth. Taken together with the recently completed convertible notes offering, Progress is exceptionally well positioned to continue making accretive acquisitions and executing our Total Growth Strategy.”
JPMorgan Chase Bank, N.A. acted as Administrative Agent; Bank of America, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. as Syndication Agents; and Citizens Bank, N.A., PNC Bank, N.A., Silicon Valley Bank, a division of First-Citizens Bank & Trust Company and TD Bank, N.A. as Documentation Agents, and JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A., and Wells Fargo Bank, N.A. acted as Joint Bookrunners and Joint Lead Arrangers.
About Progress
Progress (Nasdaq: PRGS) provides software that enables organizations to develop and deploy their mission-critical applications and experiences, as well as effectively manage their data platforms, cloud and IT infrastructure. As an experienced, trusted provider, we make the lives of technology professionals easier. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress. Learn more at www.progress.com.
Progress and Progress Software are trademarks or registered trademarks of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.
Note Regarding Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like “believes,” “expects,” “may,” “could,” “would,” “might,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” “targets,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended November 30, 2023. Except as required by law, Progress has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations, which speak only as of the date of this press release.
| Investor Contact: | Press Contact: |
| Michael Micciche | Erica McShane |
| Progress | Progress |
| +1-781-850-8450 | +1 781-280-4000 |
| Investor-Relations@progress.com | pr@progress.com |
FAQ
What is the purpose of Progress' (PRGS) new $900 million credit facility?
When does the revolving credit facility under the Amended Credit Agreement mature?
Who acted as Administrative Agent for Progress (PRGS) in the new credit facility agreement?
How does Progress CFO Anthony Folger view the new credit facility?
Which banks were involved as Syndication Agents in Progress' (PRGS) new credit facility?
