Salesforce (NYSE:CRM) Enters into Credit Agreement with Bank of America

Salesforce, Inc. filed an 8-K with the Securities and Exchange Commission on October 31, 2024, outlining key details of a recent Credit Agreement entered into by the company. The agreement, effective as of October 31, replaces a previous Credit Agreement dated December 23, 2020.

Under the new Credit Agreement, Salesforce has established an unsecured revolving credit facility with a term of five years from the Effective Date. The aggregate commitment of all lenders under this agreement is set at $5.0 billion. This facility allows for the issuance of letters of credit up to $150 million and borrowing of swingline loans up to $150 million.

The Company can freely borrow, repay, and reborrow revolving loans in multiple currencies, including Dollars, Sterling, Euros, or other approved currencies as per the terms of the Credit Agreement. Interest on borrowings will be at a fluctuating rate per annum dependent on the currency and the Company’s credit ratings. Additionally, customary fees, including commitment fees on undrawn amounts, will be incurred by Salesforce.

Proceeds from the Credit Agreement are designated for general corporate purposes. Voluntary prepayments of loans and reductions of unused commitments are permissible without penalty, subject to certain conditions. The agreement includes representations, warranties, covenants, and default clauses typical of unsecured financings of this nature.

The full text of the Credit Agreement can be found in Exhibit 10.1 of the filing. A noteworthy disclosure in the filing mentions that certain financial institutions involved in the agreement or their affiliates have previously provided services to Salesforce and may do so in the future, earning standard compensation and expense reimbursement.

Amy Weaver, President, and Chief Financial Officer of Salesforce, signed the 8-K report, officially documenting the Credit Agreement on November 5, 2024.

This new Credit Agreement highlights Salesforce’s strategic financial management and its efforts to secure flexible and substantial funding for its operational needs.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Salesforce’s 8K filing here.

About Salesforce

Salesforce, Inc provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.