Tech Giant Globant Boosts Financial Flexibility with $375M Banking Deal

Rhea-AI Filing Summary

Globant has announced a significant expansion of its credit facilities through Amendment No. 1 to its Fourth Amended and Restated Credit Agreement. The company's U.S. subsidiary, Globant LLC, has secured an additional $375 million in term loans from a consortium of major banks led by HSBC Bank USA.

Key terms of the amendment include:

• Term Loans mature on May 30, 2028, matching the existing revolving credit facility
• Interest rates set at either SOFR plus 1.25-1.875% or Alternate Base Rate plus 0.25-0.875%
• Proceeds will refinance outstanding balance under existing revolving credit facility
• Quarterly financial covenants require minimum interest coverage ratio of 3.00:1.00 and maximum net leverage ratio of 3.50:1.00

The loans are guaranteed by Globant S.A., Globant España S.A., and Globant IT Services Corp., secured by substantially all assets of the borrower and subsidiary guarantor. This amendment demonstrates Globant's continued access to significant institutional financing while maintaining strategic financial flexibility.

Positive

• Secured additional $375 million in credit capacity through new term loan tranche, demonstrating strong banking relationships and access to capital
• Term loan maturity extends to May 2028, providing long-term financial flexibility
• Favorable interest rate terms with SOFR + 1.25-1.875% or ABR + 0.25-0.875%, indicating strong credit profile
• Maintains healthy financial covenants with minimum interest coverage ratio of 3.00:1.00 and maximum net leverage ratio of 3.50:1.00

Negative

• New debt arrangement increases overall leverage and interest expense burden
• Credit agreement contains restrictive covenants that may limit operational and strategic flexibility

Form 6-K: How Foreign Companies Report to the SEC →

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of June 2025

Commission File Number 001-36535

 

GLOBANT S.A.

(Translation of registrant's name into English)

 

37A, Avenue J.F. Kennedy

L-1855, Luxembourg

Tel: + 352 20 30 15 96

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

  x Form 20-F ¨ Form 40-F  

 

 

 

 

 

 

GLOBANT S.A.

FORM 6-K

 

Globant S.A. (the “Company”) is furnishing under the cover of Form 6-K the following:

 

Amendment No. 1 to the Fourth Amended and Restated Credit Agreement

 

On June 18, 2025, Globant, LLC (the “Borrower”), a U.S. subsidiary of the Company, entered into Amendment No. 1 to that certain Fourth Amended and Restated Credit Agreement (the “Amendment”), which amends the existing Fourth Amended and Restated Credit Agreement, dated as of May 31, 2023 (the “Credit Agreement”), with HSBC Bank USA, N.A. as administrative agent, issuing bank and swingline lender and certain financial institutions listed therein as lenders.

 

Under the Amendment, the Borrower will increase its credit capacity with an additional $375 million of indebtedness under a new term loan tranche (the “Term Loans”) from HSBC Bank USA, N.A, JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, Citibank, N.A., PNC Bank, National Association, Bank of America, N.A., Bank of China Limited, New York Branch, BNP Paribas, and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch. The Term Loans will be used to repay the outstanding balance under the existing revolving credit facility. The Term Loans have a maturity date of May 30, 2028, which is the same maturity date as the existing revolving credit facility under the Credit Agreement.

 

Interest on the Term Loans will accrue at a rate per annum equal to either (i) SOFR plus between 1.25% and 1.875%, or (ii) the Alternate Base Rate (as defined in the Credit Agreement) plus between 0.25% and 0.875%, at the option of the Borrower. The applicable margin and the commitment fee rate will be determined quarterly based upon the Maximum Net Leverage Ratio.

 

The Borrower’s obligations under the Credit Agreement, as amended by the Amendment, are guaranteed by the Company, its subsidiary, Globant España S.A., and the Borrower’s subsidiary, Globant IT Services Corp. (the “Subsidiary Guarantor”), and are secured by substantially all of the Borrower’s and the Subsidiary Guarantor’s now owned and after-acquired assets. The Credit Agreement, as amended by the Amendment, also contains certain customary negative and affirmative covenants, which compliance may limit the flexibility of the Company in operating its business and its ability to take actions that might be advantageous to the Company and its shareholders.  The Borrower is required to comply with two financial maintenance covenants, which are tested quarterly: (i) a minimum interest coverage ratio of 3.00:1.00 and (ii) a Maximum Net Leverage Ratio of 3.50:1.00.

 

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of such agreement, which is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

 

Incorporation by Reference

 

The information contained in this report on Form 6-K is hereby incorporated by reference into the Company’s registration statements on Form F-3 (File No. 333-286306) and on Form S-8 (File Nos. 333-201602, 333-211835, 333-232022, 333-255113, 333-266204 and 333-281049), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

 

Exhibit 99.1 Amendment No. 1 to Fourth Amended and Restated Credit Agreement, dated June 18, 2025, by and among Globant, LLC, as borrower, HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender, HSBC Bank USA, N.A., JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, Citibank, N.A., PNC Bank, National Association, and Bank of America, N.A., as joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, and Citibank, N.A., as joint syndication agents, and certain financial institutions listed therein, as lenders.

 

 

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 	GLOBANT S.A.
 	 
 	 
 	By:	/s/ JUAN URTHIAGUE
 	 	Name: Juan Urthiague
 	 	Title: Chief Financial Officer

 

Date: June 23, 2025

 

 

FAQ

How much additional credit did GLOB secure in its June 2025 credit agreement amendment?

GLOB secured an additional $375 million of indebtedness under a new term loan tranche through Amendment No. 1 to the Fourth Amended and Restated Credit Agreement with HSBC Bank USA, N.A. and other financial institutions.

What is the maturity date for GLOB's new term loans from the June 2025 amendment?

The Term Loans have a maturity date of May 30, 2028, which is the same maturity date as the existing revolving credit facility under the Credit Agreement.

What are the interest rates for GLOB's new term loans in 2025?

Interest on the Term Loans will accrue at either (i) SOFR plus 1.25% to 1.875%, or (ii) the Alternate Base Rate plus 0.25% to 0.875%, at GLOB's option. The applicable margin is determined quarterly based on the Maximum Net Leverage Ratio.

What financial covenants must GLOB maintain under its 2025 credit agreement?

GLOB must comply with two quarterly-tested financial covenants: (i) a minimum interest coverage ratio of 3.00:1.00 and (ii) a Maximum Net Leverage Ratio of 3.50:1.00.

Who are the guarantors of GLOB's credit agreement as of June 2025?

The credit agreement obligations are guaranteed by Globant S.A. (the parent company), Globant España S.A., and Globant IT Services Corp. (the Subsidiary Guarantor), and are secured by substantially all of the Borrower's and Subsidiary Guarantor's current and future assets.