Latham & Watkins’ advice to Eventbrite, Inc. in a groundbreaking, tailored financing package with leading investment firm Francisco Partners has been profiled as one of the Top 10 transactions defining private debt.
In May 2020, Eventbrite, a global self-service ticketing and experience technology platform serving a community of nearly one million creators, needed capital as the Covid-19 pandemic leveled the live event industry. Against one of the most dramatic backdrops in living memory – the pandemic – Francisco Partners provided US$225 million senior secured term loan facility and purchased 2.5% of outstanding common stock of Eventbrite.
“The financing from Francisco Partners was significant in that it allowed Eventbrite the flexibility to manage through the various challenges imposed by Covid-19, and directly contributed to Eventbrite’s plan for long-term growth and the return of in-person events around the world,” noted Private Debt Investor.
Aspects of the transaction included converting Eventbrite’s prior credit agreement of a syndicated cashflow revolver and term loans with floating rate, cash pay interest mechanic to a credit agreement containing an initial loan facility, a delayed-draw term loan facility, call protection, fixed-rate cash pay interest and paid-in-kind with bespoke maintenance covenants and various changes to negative covenants, together with revised equity terms.
The Latham & Watkins financing team advising Eventbrite was led by Bay Area partner Haim Zaltzman, Washington, D.C. partner Benjamin Berman, Bay Area/Los Angeles partner Elizabeth Oh, and Bay Area partner Kathleen Wells, among others.