8x8, Inc. announced a new $250 million senior secured term loan facility in a transaction led by Francisco Partners. Under the credit agreement, the Company intends to use the facility to fund the cash portion of an exchange of approximately $404 million principal amount of the Company's 0.50% convertible notes due 2024 and the concurrent repurchase of approximately $60 million of the Company's common stock. The term loan facility will mature in July 2027.

Advances under the term loan facility will bear interest at an annual rate equal to the Term Secured Overnight Financing Rate (SOFR), plus a margin of 6.50%, subject to a floor of 1.00% and a credit spread adjustment of 0.10%. Wilmington Savings Fund Society, FSB will serve as administrative agent, with certain affiliates of Francisco Partners as lenders (Credit Agreement). The Credit Agreement will be guaranteed by certain of the Company's wholly-owned subsidiaries, other than immaterial subsidiaries and other customary exceptions, and secured by a perfected security interest in substantially all of the Company's tangible and intangible assets, as well as substantially all of the tangible and intangible assets of the guarantors.

The initial funding of loans under the Credit Agreement is expected to occur on August 10, 2022, subject to customary closing conditions. J. Wood Capital Advisors LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to the Company on the transaction.