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Umpqua Bank Closes $10MM Working Capital Facility for ShotSpotter

October 03, 2018, 07:19 AM
Filed Under: Technology

ShotSpotter, Inc. entered into a Credit Agreement with Umpqua Bank, which the Company intends to use for general working capital purposes. The Umpqua Credit Agreement allows the Company to borrow up to $10.0 million under a revolving loan facility (the Revolving Facility). Borrowings under the Umpqua Credit Agreement are secured by substantially all of the assets of the Company.  The Umpqua Credit Agreement includes a letter of credit subfacility of up to $3.0 million.  Any amounts outstanding under the letter of credit subfacility reduce the amount available for the Company to borrow under the Revolving Facility.

Under the Umpqua Credit Agreement, the Company has the option to select an interest rate based on either (1) a base rate, which fluctuates daily and is the greater of (a) the prime rate in effect as of any date of determination and (b) the daily LIBOR rate as of such date of determination plus 1.0% per annum or (2) a LIBOR rate, which can be for a period of 30, 60 or 90 days at the Company’s option and is equal to the published rate in the Wall Street Journal for such 30-, 60- or 90-day period two business days prior to the commencement of such period, in each case plus 2.0% per annum.  Any letters of credit issued under the Umpqua Credit Agreement will be subject to a fronting fee of 2.0% per annum.  Borrowings under the Umpqua Credit Agreement may be repaid and reborrowed at any time prior to termination of the Umpqua Credit Agreement.  The Company will be required to repay all amounts outstanding under the Umpqua Credit Agreement on September 27, 2020 or earlier if the Umpqua Credit Agreement is terminated prior to such date.  The Umpqua Credit Agreement also includes an uncommitted incremental facility provision that would allow the Company, subject to satisfaction of certain conditions, including approval by Umpqua Bank, to increase the Revolving Facility up to a total of $25.0 million.


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