10-K: Thryv Amends Credit Agreement, Replaces LIBOR with SOFR

Thryv Inc. has amended its existing credit agreement to replace the London Interbank Offered Rate (LIBOR) with the Secured Overnight Financing Rate (SOFR) as the benchmark interest rate.

Summary

• Thryv Inc. has amended its credit agreement to transition from LIBOR to SOFR, effective June 30, 2023.
• The amendment includes changes to the interest rate calculation, using Adjusted Term SOFR for SOFR Loans and a Base Rate that incorporates SOFR.
• The document outlines the definitions of key terms related to the new interest rate structure, such as Adjusted Term SOFR, Benchmark Replacement, and Benchmark Transition Event.
• It also details the procedures for borrowing, converting, and continuing loans under the amended agreement.
• The amendment includes provisions for handling situations where SOFR is unavailable or impractical, allowing for a switch to Base Rate Loans.
• The document also includes changes to the exhibits related to notices of borrowing, prepayment, and conversion/continuation.

Sentiment

Score: 7

Explanation: The document is a standard amendment to a credit agreement, reflecting a necessary transition in the financial industry. It does not contain any significant positive or negative news for Thryv.

Positives

• The amendment provides a clear path for transitioning away from LIBOR, which is being phased out.
• The new SOFR-based interest rate structure is well-defined and includes provisions for handling potential issues.
• The document ensures that the credit agreement remains functional and enforceable despite the change in benchmark rates.

Risks

• The transition to SOFR may introduce some uncertainty and complexity in the interest rate calculations.
• There is a risk that SOFR may become unavailable or impractical, requiring a switch to Base Rate Loans.
• The document does not specify the exact impact of the new interest rate structure on the cost of borrowing for Thryv.

Future Outlook

The document does not contain any specific forward-looking statements about Thryv's future performance or financial outlook.

Industry Context

The transition from LIBOR to SOFR is a broader industry trend as LIBOR is being phased out. This amendment reflects Thryv's efforts to align with these industry changes.

Comparison to Industry Standards

• The transition from LIBOR to SOFR is a common practice in the financial industry.
• Many companies are amending their credit agreements to incorporate SOFR as the new benchmark rate.
• The specific terms and conditions of the amendment, such as the interest rate margins and the handling of SOFR unavailability, are specific to Thryv's agreement and may differ from other companies.

Stakeholder Impact

• Lenders will be subject to the new SOFR-based interest rate structure.
• Borrower will be subject to the new SOFR-based interest rate structure and will need to comply with the new terms and conditions of the amended agreement.

Key Dates

Keywords

SOFR, LIBOR, credit agreement, benchmark rate, interest rate, Term Loans, Adjusted Term SOFR, Base Rate, amendment, financial agreement