Summary by Moomoo AI
On September 16, 2024, Roku Inc. entered into a significant credit agreement with Citibank N.A. serving as the administrative agent. The agreement establishes a five-year revolving credit facility allowing Roku to borrow up to $300 million, with an option to increase the amount by an additional $300 million under certain conditions. The facility also includes a $100 million sub-facility for issuing letters of credit. This financial arrangement, set to mature on September 16, 2029, is intended to support Roku's general corporate purposes, including financing working capital requirements. The agreement stipulates financial covenants that Roku must adhere to, such as maintaining specific interest coverage and net leverage ratios. It also includes standard events of default and imposes various restrictions on Roku's operations, including limitations on indebtedness, asset dispositions, and transactions with affiliates. The obligations under this credit agreement are secured by the assets of Roku and its subsidiary guarantors, with certain exceptions. The lenders involved have previously provided various services to Roku and may continue to do so in the future.
