Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 349

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 349
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10-K for the fiscal year ended December 31, 2024 for further information on the 2025 Notes and 2025 Capped Calls.The net carrying amounts of the Notes were as follows:June 30, 2025December 31, 20242030 Notes2026 Notes2030 Notes2026 Notes(in thousands)Principal$2,000,000 $1,293,750 $— $1,293,750 Unamortized debt issuance costs(28,795)(4,449)— (6,429)Carrying amount, net$1,971,205 $1,289,301 $— $1,287,321 The following tables set forth total interest expense recognized related to the Notes:Three Months Ended June 30,202520242030 Notes2026 Notes2030 Notes2026 Notes(in thousands)Amortization of debt issuance costs$209 $990 $— $990 Total$209 $990 $— $990 Six Months Ended June 30,202520242030 Notes2026 Notes2030 Notes2026 Notes(in thousands)Amortization of debt issuance costs$209 $1,980 $— $1,980 Total$209 $1,980 $— $1,980 Revolving Credit FacilityIn May 2024, the Company entered into a credit agreement with a syndicated group of lenders, that provides for a senior secured $400.0 million revolving credit facility (the Revolving Credit Facility), with a sublimit of $30.0 million available for the issuance of letters of credit and $30.0 million available for swingline borrowings. The credit agreement permits the Company to increase the commitments under the Revolving Credit Facility by an aggregate principal amount of up to $150.0 million, subject to the satisfaction of certain conditions. The proceeds of the loans under the Revolving Credit Facility may be used for working capital and general corporate purposes.

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The Company is required to pay a commitment fee on the daily unused amount of Revolving Credit Facility commitments ranging from 0.25% to 0.40% per annum, depending upon the Company’s total net leverage ratio. Borrowings under the credit agreement will bear interest, at the Company’s option, at either: (a) the alternate base rate, which is defined as a fluctuating rate per annum equal to the greatest of (