Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 139

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 1
Chunk 139
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 October 31, 2025 and January 31, 2025, we had cash and cash equivalents of $106.4 million and $84.2 million, respectively. Cash and cash equivalents consist of money market mutual funds and cash on deposit.

In addition, we also have potential borrowing capacity under our Capital One Credit Facility (as defined below) subject to certain restrictive covenants.

AccessOne Acquisition

On August 29, 2025, we entered into a definitive agreement to acquire AccessOne for total cash consideration of $160 million, subject to customary closing and post-closing adjustments. Subsequent to quarter-end, on November 12, 2025,  we completed the transactions contemplated by the Merger Agreement. The purchase price was funded with a combination of cash and the net proceeds from a new, 364-day $110 million secured term loan (the “Bridge Loan”) entered into on the Closing Date. 

Bridge Loan

On the Closing Date, in connection with the closing of the AccessOne Acquisition, the Company entered into the Bridge Credit Agreement. The Bridge Loan has an outstanding principal amount of $110 million and bears interest at a per annum rate equal to the three month SOFR rate plus a margin of 4.00% per annum. The Bridge Loan matures on November 11, 2026. The interest rate applicable to the Bridge Loan will increase by 0.5% every three months following the closing date of November 12, 2025. We incurred approximately $3 million in debt issuance costs and original issue discount related to the Bridge Loan.  We expect to refinance or replace the Bridge Loan with a long-term credit facility. 

Capital One Credit Facility

In December 2023, we entered into a 5-year, $50 million senior secured asset-based revolving credit facility (as amended, the "Capital One Credit Facility") maturing in December 2028, which includes a swingline sub-limit of at least $5.0 million and a letter of credit sub-limit of at least $5.0 million. The Capital One Credit Facility was entered into with Capital One, N.A. (“Capital One”) acting as administrative agent and replaces our previous senior secured revolving credit facility with Silicon Valley Bank, which we terminated on the same date. We believe the Capital One Credit Facility will give us additional financial flexibility through fiscal 2028. The facility is available to us for working capital and general corporate purposes.

The Capital One Credit Facility includes financial covenants including