Dynatrace Lands $500M Revolving Credit Line Led by Bank of America
Dynatrace has secured a $500 million revolving credit line led by Bank of America. The facility, which matures on June 24, 2031, allows Dynatrace to borrow in US dollars, euros, pounds sterling, and Canadian dollars, with a $100 million cap on non-dollar borrowings.
The deal is structured to provide Dynatrace with flexible capital without diluting shareholders. It also points to the company's plans for measured expansion rather than a single large bet. The credit line can be used for acquisitions exceeding $150 million, and the company must keep its total leverage ratio at or below 4.00 to 1.00 from December 31, 2026.
The facility has provisions for up to two one-year extensions subject to lender approval. If Dynatrace's 2031 exchangeable notes remain outstanding above $300 million ninety-one days before they mature, an earlier maturity date is triggered. The interest rate on the credit line is tied to benchmark rates plus a margin that varies with leverage or optionally with the company's credit ratings from S&P and Moody's.