Asana lines up $150M revolver led by Wells Fargo
What's the deal? Asana has secured a $150 million senior secured revolving credit facility, with Wells Fargo Bank as administrative agent and lead and MUFG BankDealroom has a profile for this one. Try Dealroom → as syndication agent. Wells Fargo Securities LLCDealroom has a profile for this one. Try Dealroom → and MUFG served as joint lead arrangers and bookrunners on the five-year line, which matures November 9, 2031.
Why now? The new facility replaces Asana's prior credit agreement with Silicon Valley Bank, now part of First-Citizens Bank & Trust. On November 6, the work-management software company repaid that agreement in full with cash on hand and terminated it.
What's the endgame? Borrowings can fund working capital and general corporate purposes, including sublimits of up to $30 million for standby letters of credit and $15 million for swingline loans. Asana drew nothing at signing and is not obligated to do so, making the line a liquidity backstop rather than fresh capital.
By the numbers: As of July 31, Asana held $339.9 million in cash, cash equivalents, and marketable securities, against $36.9 million then outstanding under the old facility. Its latest quarter showed 10% revenue growth and a narrower GAAP operating loss, though it remained unprofitable.
What could go wrong? The facility is secured by substantially all of Asana's assets and carries financial covenants. Pricing floats: term SOFR loans start at a 2.00% margin, rising to as much as 2.50% depending on the company's net leverage ratio, alongside a quarterly commitment fee on unused funds.
The signal: The move adds financial flexibility without signaling a cash crunch, swapping a single-bank arrangement for a syndicated line as Asana shifts banking relationships post-IPO.
Read more: abfjournal.com
Image credit: Generated with Gemini
