THE TRADE DESK, INC. (FRA:TT8) Files An 8-K Entry into a Material Definitive Agreement

THE TRADE DESK, INC. (FRA:TT8) Files An 8-K Entry into a Material Definitive Agreement

Story continues below

Item 1.01. Entry into a Material Definitive Agreement.

The information set forth under Item 2.03 of this Current Report
on Form 8-K is incorporated by reference into this Item 1.01.

Item 2.03. Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

On May 9, 2017, The Trade Desk, Inc. (the Registrant), a
syndicate of banks, led by Citibank, N.A., and Citibank, N.A., as
agent, entered into an amended and restated loan and security
agreement (the Amended Revolving Credit Agreement). The Amended
Revolving Credit Agreement, among other things, provides for an
increase of $75.0 million in the aggregate principal amount of
commitments available under the Registrants senior asset-based
revolving credit facility and provides the Registrant greater
flexibility with respect to working capital, acquisitions and
general corporate purposes (the Amended Credit Facility).
Available funding commitments to the Registrant under the Amended
Credit Facility, subject to certain conditions, total up to
$200.0 million, with a $20.0 million sublimit for swingline
borrowings and a $15.0 million sublimit for the issuance of
letters of credit. Under certain circumstances, the Registrant
has the right to increase the Amended Credit Facility by an
amount not to exceed $100.0 million. The Amended Revolving Credit
Agreement is collateralized by substantially all of the
Registrants assets, including a pledge of certain of its accounts
receivable, deposit accounts, intellectual property, investment
property, and equipment, and availability under the Amended
Revolving Credit Agreement is based on the percentage of the
value of accounts receivable, as reduced by certain reserves.

Loans under the Amended Credit Facility bear interest through
maturity at a variable rate based upon, at the Registrants
option, an annual rate of either a Base Rate or a LIBOR rate,
plus an applicable margin (Base Rate Borrowings and LIBOR Rate
Borrowings). The Base Rate is defined as a fluctuating interest
rate equal to the greatest of (1) the federal funds rate plus
0.50%, (2) Citibank, N.A.s prime rate, and (3) one month LIBOR
rate plus 2.00%. The applicable margin is defined as a rate
between 1.00% to 1.50% for Base Rate Borrowings and between 2.00%
and 2.50% for LIBOR Rate Borrowings, depending on the amount of
average excess availability on the Amended Credit Facility. The
fee for undrawn amounts ranges from 0.325% to 0.375%. Interest is
payable either (a) monthly for Base Rate Borrowings or (b) for
LIBOR Rate Borrowings, on the earlier of (1) the last day of the
interest period, which can be one, two, three or six months as
selected by us or (2) the last day of each three month interval.
The Registrant will also be required to pay customary letter of
credit fees, as necessary.

The Amended Credit Facility matures and all outstanding amounts
become due and payable on May 9, 2022.

The Amended Revolving Credit Agreement contains customary
conditions to borrowings, events of default and covenants,
including covenants that restrict our ability to sell assets,
make changes to the nature of our business, engage in mergers or
acquisitions, incur, assume or permit to exist additional
indebtedness and guarantees, create or permit to exist liens, pay
dividends, issue equity instruments, make distributions or redeem
or repurchase capital stock or make other investments, engage in
transactions with affiliates and make payments in respect of
subordinated debt. The Amended Revolving Credit Agreement also
requires that if the Registrants excess availability is less than
the greater of (a) $15.0 million and (b) 12.5% of the lesser of
(1) the borrowing base then in effect and (2) the commitments
under the Amended Credit Facility then in effect, the Registrant
to maintain compliance with a consolidated fixed charge coverage
ratio covenant of at least 1.15 to 1.00.

The foregoing description of the Amended Revolving Credit
Agreement is only a summary and is qualified in its entirety by
reference to the full text of the Amended Revolving Credit
Agreement, which will be filed as an exhibit to the Registrants
Form 10-Q for the quarterly period ended March 31, 2017.

Item 9.01. Financial Statements and Exhibits.

(d)

Exhibits

99.1

Press release dated May 10, 2017 of the Registrant,
announcing its Amended Revolving Credit Agreement.


THE TRADE DESK, INC. (FRA:TT8) Recent Trading Information

THE TRADE DESK, INC. (FRA:TT8) closed its last trading session up +1.24 at 39.00 with 0 shares trading hands.

An ad to help with our costs