Item 1.01. Entry into a Material Definitive Agreement.
On September 23, 2024, CCC Intelligent Solutions Inc. (the “Company”), an indirect wholly owned subsidiary of CCC Intelligent Solutions Holdings Inc., together with certain of its subsidiaries acting as guarantors (the “Subsidiary Guarantors”) and Cypress Intermediate Holdings II, Inc. (“Holdings” acting as a parent guarantor (together with the Subsidiary Guarantors, the “Guarantors”), entered into the second amendment (the “Amendment”) to the Credit Agreement, dated as of September 21, 2021 (the “Credit Agreement”), by and among the Company, Holdings, Bank of America, N.A. (“Bank of America”), as Administrative Agent, Collateral Agent and Swingline Lender, and each lender and issuing bank from time to time party thereto (the “Lenders”).
As a result of the Amendment, (i) the SOFR credit spread adjustment applicable to the revolving credit facility was removed entirely, and (ii) the applicable interest rate for the revolving credit facility and swingline loans (which must be in base rate) were each reduced by 0.25% such that after giving effect to the Amendment the applicable rates will be equal to:
(1) 1.25%, in the case of base rate loans, and 2.25%, in the case of SOFR (or Euribor or SONIA) loans, if the First Lien Leverage Ratio (as defined in the Credit Agreement) is greater than 2.50:1.00,
(2) 1.00%, in the case of base rate loans, and 2.00%, in the case of SOFR (or Euribor or SONIA) loans, if the First Lien Leverage Ratio is less than or equal to 2.50:1.00 but greater than to 2.00:1.00, and
(3) 0.75%, in the case of base rate loans, and 1.75%, in the case of SOFR (or Euribor or SONIA) loans, if the First Lien Leverage Ratio is less than or equal to 2.00:1.00.
Additionally, the maturity date for the revolving credit facility was extended to September 23, 2029, subject to a springing maturity date if greater than $234,000,000 of the initial term loans remain outstanding as of the date that is 91 days prior to the stated maturity of such initial term loans.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
Credit Agreement Amendment
As discussed in Item 1.01 above, on September 23, 2024, the Company entered into the Amendment. The description of the material terms of the Amendment in Item 1.01 is incorporated by reference in this Item 2.03.
