Yext Inc.

07/29/2024 | Press release | Distributed by Public on 07/29/2024 14:31

Material Agreement Form 8 K

Item 1.01. Entry into a Material Definitive Agreement
On July 26, 2024, Yext, Inc. (the "Company") entered into a third amendment ("Amendment No. 3") to that certain Credit Agreement, dated March 11, 2020, by and among the Company, as borrower, Yext Holdings, LLC, as guarantor, the lenders from time to time party thereto, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as administrative agent, collateral agent, issuing lender and swingline lender (as amended by that certain First Amendment to Credit Agreement and Guarantee and Collateral Agreement dated as of January 29, 2021, and as further amended by that certain Second Amendment to Credit Agreement dated as of December 22, 2022, the "Credit Facility"). Amendment No. 3 amends the Credit Facility to, among other things (i) amend the interest rate applicable to loans under the Credit Facility, (ii) replace the consolidated quick ratio and recurring revenue growth rate financial covenants with consolidated total leverage ratio and minimum liquidity financial covenants, and (iii) make certain other revisions as more fully set forth therein.
As amended, the revolving loans bear interest, at the Company's election, at an annual rate based on SOFR or a base rate. Loans based on SOFR shall bear interest at a rate between SOFR plus 1.75% and SOFR plus 2.25%, depending on the Company's consolidated total leverage ratio and subject to a SOFR floor of 1.00%. Loans based on the base rate shall bear interest at a rate between the base rate minus 1.25% and the base rate minus 0.75%, depending on the Company's consolidated total leverage ratio.
As amended, the Credit Facility will include financial covenants requiring the Company to maintain minimum liquidity of $35,000,000 at all times and a consolidated total leverage ratio of no greater than 3.00 to 1.00, tested on a quarterly basis.
The description of Amendment No. 3 is qualified in its entirety by reference to the text of Amendment No. 3, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.