Dropbox Secures $700mln in Delayed Draw Term Loans Under Amended Credit Agreement

Dropbox has amended its credit agreement to provide for additional secured delayed draw term loans of up to $700 million. The amendment also extends the term loan facility to $2.7 billion, consisting of existing term loans, delayed draw term loans, and the new 2025 delayed draw term loans. Proceeds from the new loans may be used to prepay convertible senior notes due 2026. The new loans are due on September 9, 2030, and are subject to mandatory prepayments and a prepayment premium.

San Francisco, CA - Dropbox (NASDAQ: DBX) announced on Tuesday, September 9, 2025, a significant amendment to its existing Credit and Guaranty Agreement, providing the company with up to an additional $700 million in delayed draw secured term loans. This amendment extends the term loan facility to a total of $2.7 billion, comprising existing term loans, delayed draw term loans, and new 2025 delayed draw term loans. The proceeds from these new loans will be used to prepay convertible senior notes due in 2026. The new loans are set to mature on September 9, 2030, and are subject to mandatory prepayments and a prepayment premium .

In addition to the credit agreement amendment, Dropbox authorized a new share repurchase program, enabling the purchase of an additional $1.5 billion of its Class A common stock. The company's stock price reacted positively to the news, climbing 0.95% premarket to $30.63 .

The amended facility was led and substantially provided by Blackstone Credit & Insurance, who served as the lead arranger and lead structuring agent. Dropbox's latest earnings report for the second quarter also indicated that the company continues to beat EPS estimates, with non-GAAP EPS of $0.71, beating expectations by $0.08, and revenue of $625.7 million, surpassing estimates by $7.1 million .

Dropbox's forward-looking statements highlight the company's expectations regarding the performance of its Core FSS business, new product initiatives, and adoption by current and new customers. However, the company also acknowledges various risks and uncertainties, including potential impacts on its financial results and business operations due to changes in economic, political, and market trends, pricing and packaging changes, and competition in its markets .

References:
https://seekingalpha.com/news/4493326-dropbox-announces-additional-15b-stock-repurchase-program-amends-secured-credit-agreement
https://www.marketscreener.com/news/dropbox-amends-secured-credit-agreement-announces-additional-1-5b-stock-repurchase-program-ce7d59dfd189f525