SOUNDHOUND AI, INC. (SOUN): debt financing — SoundHound AI closes $100M term loan from Atlas Credit Partners, repays $30M prior debt

SOUNDHOUND AI, INC.

New $100M senior secured term loan from Atlas Credit Partners, funded at closing; upsizable to $125M.
Proceeds used to repay ~$30M of existing facilities (Structural & SVB) and add over $100M cash to balance sheet.
Loan bears interest at SOFR+8.50% or ABR+7.50%, matures April 2027, no scheduled amortization.
Issued warrant for 3,301,536 shares at $2.59 per share to the agent.
Company expects >$100M cash after closing; backlog $332M as of Dec 31, 2022.

item 1.01 item 1.02 item 2.03 item 3.02 item 3.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

SOUNDHOUND AI, INC. incurred term loan of $100 million with ACP Post Oak Credit II LLC at SOFR plus 8.50% per annum maturing April 14, 2027.

Instrument: term loan
Principal: $100 million
Counterparty: ACP Post Oak Credit II LLC
Rate: SOFR plus 8.50% per annum
Maturity: April 14, 2027
Event: incurrence

Exact text from the filing

The Credit Agreement provides for a term loan facility in an aggregate principal amount of up to $100 million (the “Term Loan”), the entirety of which was funded on the Closing Date.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

SOUNDHOUND AI, INC. entered into Senior Secured Term Loan Credit Agreement with ACP Post Oak Credit II LLC valued at up to $100 million term loan facility (effective 2023-04-14).

Action: entry
Agreement: credit facility
Counterparty: ACP Post Oak Credit II LLC
Value: up to $100 million term loan facility
Effective: 2023-04-14

Exact text from the filing

On April 14, 2023 (the "Closing Date"), SoundHound AI, Inc., a Delaware corporation (the "Company"), entered into a Senior Secured Term Loan Credit Agreement (the "Credit Agreement") with ACP Post Oak Credit II LLC, as Administrative Agent and Collateral Agent for the Lenders (the "Agent"), and the lenders from time to time party thereto (the "Lenders").

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

SOUNDHOUND AI, INC. terminated Loan and Security Agreement with Ocean II PLO LLC and Structural Capital Investments III, LP valued at prepaid in full all outstanding obligations and terminated (effective 2023-04-14).

Action: termination
Agreement: credit facility
Counterparty: Ocean II PLO LLC and Structural Capital Investments III, LP
Value: prepaid in full all outstanding obligations and terminated
Effective: 2023-04-14

Exact text from the filing

Concurrently with the Company's entry into the Credit Agreement, the Company used a portion of the proceeds to prepay in full all outstanding obligations under, and terminated, the (i) Loan and Security Agreement, dated as of June 14, 2021, by and among Ocean II PLO LLC, Structural Capital Investments III, LP, and SoundHound, Inc., a subsidiary of the Company (the "Structural Facility"), and (ii) Loan and Security Agreement, dated as of March 31, 2021, by and among SoundHound, Inc., Silicon Valley Bank, and SVB Innovation Credit Fund VIII, L.P., (the "SVB Facility", together with the Structural Facility, the "Existing Facilities").

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41 debt financings filed in the last 30 days. Browse all debt financings →

SOUNDHOUND AI, INC. filing history →

Source: SEC EDGAR

accession 0001213900-23-030044

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