December 11, 2024
$2bn
Structure: Two-Tranche Facility
Tranche 1: $1 Billion Initial Term Loan Facility
Tranche 2: $1 Billion Delayed Draw Term Loan Facility
Maturity: December 11, 2029 (5 Years)
Effective Interest Rate: SOFR + 3.75%
Matthews South Role: Lead Financial Advisor and Co-Placement Agent
Tranche 1: $1 Billion Initial Term Loan Facility
Tranche 2: $1 Billion Delayed Draw Term Loan Facility
Maturity: December 11, 2029 (5 Years)
Effective Interest Rate: SOFR + 3.75%
Matthews South Role: Lead Financial Advisor and Co-Placement Agent
$2 Billion New Credit Facility
Transaction Summary
- On December 11, 2024, Dropbox announced it has entered a five-year term loan facility for up to $2 billion with Blackstone, which consists of (i) an initial term loan facility of $1 billion and (ii) a delayed draw term loan facility of $1 billion
- Concurrently, the company announced a $1.2 billion share repurchase authorization
- Company plans to use the net proceeds for working capital and general corporate purposes, including share buybacks
Matthews South Role
- Matthews South provided Dropbox with ongoing analysis on its capital structure and financing alternatives the company could consider
- We helped Dropbox assess various funding alternatives, and, once the company decided to pursue private debt, we supported the company through every step of the structuring and execution process
- The transaction is a novel application of the rapidly developing private debt market and represents a milestone in expanding the market access of U.S. corporate issuers
- The execution process and structuring were highly customized to Dropbox’s needs, and we helped the company secure an attractive financing package that supports their near- and long-term goals
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