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E2open Parent Holdings, Inc. (NYSE:ETWO), a leader in the computer processing and data preparation industry with a market capitalization of $715 million, has entered into a significant amendment to its credit agreement, according to a recent 8-K filing with the Securities and Exchange Commission. The company’s stock has shown recent momentum with a 12% gain over the past week, though InvestingPro analysis indicates the stock remains undervalued based on its Fair Value assessment. On Monday, the company disclosed Amendment No. 5 to its existing credit agreement, originally dated February 4, 2021, which brings notable changes to its financial structure.
The amendment, effective as of April 18, 2025, sees Goldman Sachs Bank USA stepping down as the administrative and collateral agent, with UBS AG, Stamford Branch taking over these roles. This restructuring comes as E2open manages its total debt of approximately $1.07 billion, maintaining a current ratio of 1.08. Concurrently, the maturity dates for both the multicurrency tranche revolving and the USD tranche revolving have been extended to February 4, 2028, with a provision that they will mature 91 days prior to the term loan maturity date if sooner.
The agreement also includes the termination of certain revolving commitments from Goldman Sachs on a non-pro-rata basis and all revolving commitments from Blackstone (NYSE:BX) Holdings Finance Co. L.L.C. Consequently, the multicurrency tranche revolving commitment has been reduced to $56 million, and the USD tranche revolving commitment to $67.75 million.
E2open has compensated UBS for taking the administrative lead and has also paid an extension fee to the revolving lenders. These financial reshufflings are expected to provide E2open with a more flexible capital structure moving forward.
The 8-K filing provides a detailed account of the amendments, underscoring the formalization of UBS AG’s new role and the adjusted financial commitments. This strategic move by E2open reflects its ongoing efforts to optimize its financial operations and ensure long-term growth stability.
The detailed terms of the Credit Agreement Amendment are included in Exhibit 10.1 of the 8-K filing, which offers a comprehensive view of the changes made. This announcement is based on the press release statement filed with the SEC and does not include any speculative or promotional content. Looking ahead, InvestingPro analysts project E2open to return to profitability this fiscal year, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of 1,400+ top US stocks.
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