September 9, 2025
$2.7bn
Structure: Senior Secured Term Loan
New Tranche: $700 Million Delayed Draw Term Loan
Existing Facility: $1 Billion Initial Term Loan + $1 Billion Delayed Draw Term Loan
Use of Proceeds: Refinance Convertible Senior Notes due 2026
New Tranche Maturity: September 9, 2030 (5 Years)
Interest Rate: SOFR + 3.75%
Matthews South Role: Financial Advisor
New Tranche: $700 Million Delayed Draw Term Loan
Existing Facility: $1 Billion Initial Term Loan + $1 Billion Delayed Draw Term Loan
Use of Proceeds: Refinance Convertible Senior Notes due 2026
New Tranche Maturity: September 9, 2030 (5 Years)
Interest Rate: SOFR + 3.75%
Matthews South Role: Financial Advisor
$2.7 Billion Upsized Private Credit Facility
Transaction Summary
- On September 9, 2025, Dropbox announced a $700 million upsize to its existing $2.0 billion term loan facility with Blackstone, bringing the total facility size to $2.7 billion
- The finalized credit facility consists of:
- $1.0 billion initial term loans funded in December 2024
- $1.7 billion delayed draw term loans, not yet funded
- Company plans to use the net proceeds of the new delayed draw term loan to refinance its outstanding convertible senior notes due 2026
Concurrent Share Repurchase Authorization
- Concurrently, the company announced a $1.5 billion share repurchase authorization
Matthews South Role
- Matthews South provided Dropbox with ongoing analysis on its capital structure and financing alternatives
- We helped Dropbox assess various funding alternatives, and once the company decided to pursue an increase to its private debt facility, we supported the company through every step of the structuring and execution process
- The facility is highly customized to Dropbox’s needs, and we helped the company secure an attractive financing package that supports their near- and long-term goals
Additional Deals for Dropbox:
