Dropbox, Inc. has announced the completion of a new secured credit agreement and a $1.2 billion stock repurchase program. The company has entered into a credit and guaranty agreement, providing up to $2.0 billion in secured term loan due 2029. The facility was led and substantially provided by Blackstone Credit & Insurance. The new stock repurchase program authorizes the purchase of an additional $1.2 billion of its class A common stock.
The company has terminated its existing revolving credit and guaranty agreement, dated as of March 20, 2014, in connection with the entry into the new credit agreement. Dropbox also announced that it expects to meet or exceed its Q4 and FY 2024 financial guidance as described in its investor supplement posted on November 7, 2024.
In the words of Dropbox co-founder and CEO Drew Houston, "As we near the end of 2024, we’re excited to announce the successful raise of up to $2 billion in secured term loans and the authorization of a new $1.2 billion share repurchase program. This transaction facilitates our ongoing commitment to return capital to shareholders and further invest in our strategy to accelerate the growth of our new products, including Dropbox Dash, to create even more long-term value."
These developments indicate a significant financial move for Dropbox, positioning the company to capitalize on opportunities for growth and continue to provide value to its shareholders. The market has reacted to these announcements by moving the company's shares 5.0% to a price of $29.98. Check out the company's full 8-K submission here.
