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Salesforce, Inc. 8-K Report, Material Agreement (Oct 6, 2014)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed October 6, 2014
Period End
October 6, 2014
Security
CRM
In the record · 2016–202610-K1110-Q328-K144

CRM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. FY2017 annual report10-K · Mar ’17Mar ’17
  2. Deal closed8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed October 6, 2014. Cited figures are marked; the original filing is the authoritative source.

Salesforce, Inc. (CRM) filed an 8-K on October 6, 2014, to report the entry into a new Credit Agreement.

This agreement establishes a $650 milliona revolving loan facility maturing on October 6, 2019, replacing the previous credit agreement dated July 11, 2013. Upon closing, Salesforce borrowed $300 million under the new facility, using a significant portion to repay outstanding debt from the old agreement. The new credit facility offers flexibility for working capital, capital expenditures, and strategic initiatives like acquisitions.

The interest rates are variable, based on either a base rate or an adjusted LIBOR rate, with spreads determined by Salesforce's consolidated leverage ratio. The agreement also includes customary covenants and events of default, requiring Salesforce to maintain specific financial ratios. The primary guarantor at closing was ExactTarget, Inc.

02—Key points

Key Highlights

  1. Entry into a new $650 million revolving credit facility maturing in October 2019.
  2. Immediate borrowing of $300 million under the new facility.
  3. Repayment of $263 million of debt under the previous credit agreement.
  4. Flexibility to use proceeds for working capital, capital expenditures, and permitted acquisitions.
  5. Variable interest rates based on leverage ratios, with options for base rate or adjusted LIBOR.
  6. Inclusion of affirmative and negative covenants, including financial ratio maintenance (leverage and interest coverage).
  7. ExactTarget, Inc. is identified as the sole guarantor at the time of closing.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this 8-K filing?

    The primary purpose of this 8-K filing is to announce Salesforce's entry into a new, material definitive agreement, specifically a Credit Agreement for a new revolving loan facility.

  2. What is the size and maturity of the new credit facility?

    The new credit facility has a maximum borrowing capacity of $650 million and matures on October 6, 2019.

  3. How will the borrowed funds be used?

    Immediately upon closing, $300 million was borrowed, with approximately $263 million used to repay the previous credit agreement. Remaining proceeds and future borrowings can be used for working capital, capital expenditures, and other general corporate purposes, including permitted acquisitions.

  4. What are the key financial covenants mentioned in the agreement?

    The agreement includes customary covenants that limit or restrict certain corporate actions and requires Salesforce to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio.

04—Continue

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