Company: APPF
Filing Date: 2025-10-03
Form Type: 8-K
Source: 0001433195-25-000134
Chunk: 1

Company: APPFOLIO INC
Filing Date: 2025-10-03
Form: 8-K
Item: Item 1.01
Chunk 1
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 rate per annum equal to Daily Simple SOFR plus a margin that is based upon the Company’s Consolidated Net Leverage Ratio (ranging from 125.0 to 200.00 basis points). Subject to certain conditions, the Company may borrow, prepay and reborrow amounts under the Credit Facility at any time during the term thereof and may reduce the revolving loan commitments, in whole or in part, without penalty or premium.

The Company is required to pay, on a quarterly basis, a commitment fee based on amounts committed but unused under the Credit Facility at a rate equal to 15.0 to 30.0 basis points per annum depending on the Company’s Consolidated Net Leverage Ratio. The Company is also obligated to pay certain customary letter of credit and agency fees.

The Company’s obligations under the Credit Facility are guaranteed by certain of the Company’s subsidiaries (collectively, the “ Guarantors”) and secured by a first-priority security interest in substantially all of the personal property of the Company and the Guarantors, subject to certain customary exclusions and exceptions.

The Credit Facility contains customary representations, warranties and affirmative and negative covenants, including a financial covenant that requires the Company to maintain a Consolidated Net Leverage Ratio not greater than 3.75:1:00 (or 4.25:1:00 during any Acquisition Step-Up Period (as defined in the Credit Facility)). The negative covenants include, among other things, restrictions on the ability of the Company and its subsidiaries to incur indebtedness and liens, make investments, pay dividends or distributions or repurchase equity interests, merge, consolidate or otherwise dispose of assets, enter into transactions with affiliates, and prepay, redeem, purchase, or otherwise retire junior indebtedness, all subject to certain exceptions.

The Credit Facility also contains customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, unenforceability of loan documents, material judgments, certain material ERISA events, a change of control, and certain bankruptcy and insolvency events. Upon the occurrence and during the continuance of an event of default, the lenders may terminate their commitments and accelerate the Company’s and the Guarantors’ obligations under the Credit Facility.

The foregoing description of the Credit Facility is qualified in its entirety by reference to the Credit Facility, a copy of which is filed as Exhibit 10.1 hereto