Company: CWAN
Filing Date: 2025-03-06
Form Type: S-4/A
Source: 0001193125-25-048570
Chunk: 70

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-06
Form: S-4/A
Chunk 70
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ness of Clearwater after the completion of the Transactions may have the effect, among other things,
of reducing the flexibility of Clearwater to respond to changing business and economic conditions, requiring Clearwater to use increased amounts of cash flow to service indebtedness and increasing Clearwater’s borrowing costs. Furthermore, the
interest payable on this new

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indebtedness is based on a floating rate, which exposes Clearwater to fluctuations in the prevailing interest rates applicable to such new indebtedness which may adversely affect
Clearwater’s cash flows.

In addition, Clearwater’s credit ratings impact the cost and availability of future borrowings, and,
as a result, Clearwater’s cost of capital. Clearwater’s ratings reflect each rating organization’s opinion of Clearwater’s financial strength, operating performance and ability to meet its debt obligations. Each of the ratings
organizations reviews Clearwater’s ratings periodically, and there can be no assurance that Clearwater’s current ratings will be maintained in the future. Downgrades in Clearwater’s credit ratings could adversely affect
Clearwater’s businesses, cash flows, financial condition and operating results.

Clearwater also expects that the agreements
governing the indebtedness that it will incur will contain covenants that may, under certain circumstances, place limitations on certain actions that Clearwater could seek to undertake. Various risks, uncertainties and events beyond
Clearwater’s control could affect its ability to comply with the covenants contained in its debt agreements. Failure to comply with any of the covenants in its existing or future financing agreements could result in a default under those
agreements and under other agreements containing cross-default provisions. A default would permit lenders to accelerate the maturity of the indebtedness under these agreements. In addition, the limitations imposed by financing agreements on
Clearwater’s ability to incur additional indebtedness and to take other actions might impair its ability to obtain other financing on terms acceptable to Clearwater.

Risks Relating to Tax Matters

You should read the discussion under the section titled “The Transactions—Material U.S. Federal Income Tax Consequences of the
Corporate Mergers” for a more complete discussion of the U.S. federal income tax considerations relating to the Corporate Mergers and the ownership and disposition of any Clearwater Common Stock received in the Merger.

If the Corporate Mergers, taken together, do not qualify as a “reorganization” under Section 368(a) of the Code, the U.S. Holders of Enfusion Common Stock may be required to pay U.S