backblaze secures $20 million credit facility with citizens bank

Backblaze , Inc. (NASDAQ:BLZE), a cloud storage company with a market capitalization of $319 million and impressive revenue growth of 22% in the last twelve months, has entered into a credit agreement with Citizens Bank, N.A., as outlined in a recent SEC filing. According to InvestingPro analysis, the company’s stock is currently trading near its Fair Value, with analysts setting price targets between $10 and $16. This agreement, effective Wednesday, establishes a senior secured revolving credit facility with a principal amount of up to $20 million. Within this facility, up to $3 million is available through a letter of credit sub-facility.

The revolving facility is set to mature 24 months from the closing date, with an option for a 12-month extension contingent on meeting certain conditions. This new credit facility aligns with the company’s moderate debt profile, as InvestingPro data shows a debt-to-equity ratio of 0.62 and a healthy current ratio of 1.09. The interest rates under this agreement are determined by Backblaze’s choice between an adjusted Secured Overnight Financing Rate with an added margin of 3.25%, or an alternate base rate with an added margin of 2.25%. Additionally, Backblaze will incur a commitment fee of 0.35% on the average daily unused amount of the facility, along with a 0.125% fee on the average daily amount available under the letter of credit.

The credit agreement includes standard affirmative and negative covenants, which restrict Backblaze’s capacity to incur further debt, create property liens, make specific investments, and engage in certain mergers or consolidations. The company is also required to adhere to financial covenants concerning minimum liquidity, consolidated EBITDA, and maximum leverage. In securing the obligations under the credit agreement, Backblaze and its wholly-owned subsidiary have pledged substantially all of their assets.

The funds from the revolving facility are intended for use in general corporate purposes, including working capital. The agreement’s details are based on information from a press release statement filed with the SEC. For deeper insights into Backblaze’s financial health and growth prospects, including additional ProTips and comprehensive analysis, investors can access the full company research report on InvestingPro, which covers over 1,400 US stocks.

In other recent news, Backblaze Inc. reported its first-quarter 2025 earnings, showing a revenue of $34.6 million, which surpassed analyst expectations of $34.22 million. The company also reported an adjusted earnings per share (EPS) of -$0.03, better than the forecasted -$0.06. Backblaze has raised its full-year revenue guidance to a range of $144-$146 million, indicating confidence in ongoing growth. Additionally, the company has secured a $20 million credit facility with Citizens Bank to enhance liquidity and support its strategic growth plans. In terms of product development, Backblaze announced a private preview of its new enterprise web console, aimed at improving cloud storage security with features like role-based access controls and mandatory multi-factor authentication. Furthermore, Backblaze introduced its B2 OverDrive performance tier to cater to the increasing demand from AI customers. These developments highlight Backblaze’s focus on expanding its cloud storage solutions and improving financial flexibility.

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