L.O.T.W. #130 - Upland Software takes the high ground with new direct lending commitment from Sound Point Capital
Commitment refinances existing bank deal and includes a $240.0 million term loan and a $30.0 million revolver
In July 2025, Sound Point Capital provided a $240.0 million term loan and $30.0 revolving credit facility to Upland Software, a leader in AI-powered knowledge and content management software. The credit facility refinances ~$258 million of syndicated bank debt that was schedule to mature in August 2026.
👓At a Glance
Borrower: Upland Software, Inc.
Lender: Sound Point Capital
Deal Size:
$240.0 million term loan
$30.0 million revolving line of credit
Structure: Senior secured single tranche term loan and revolving facility
Rate: Variable - SOFR + 6.00% with SOFR floor of 1.50% with step up / step down based on leverage
Term: 72 months
Use of Proceeds: Refinance existing bank syndicated credit; working capital or general corporate purposes
Source: Press Release
📷Borrower Snapshot
Sector: Information Technology
Subsector: Software
Ownership: Public
Commercial Stage: Revenue generating; EBITDA (+) LTM
Business Overview: Upland Software (Nasdaq: UPLD) provides cloud-based enterprise work management software, offering a suite of products across project management, IT service management, marketing automation, customer experience, and document workflow. With a strategy focused on acquiring and integrating niche software businesses, Upland serves over 10,000 customers worldwide, including large enterprises and government organizations. The company operates a roll-up model, using M&A to expand its portfolio and drive recurring revenue growth. In 2022, HGGC made a $115 million strategic equity investment in Upland, gaining a 17% ownership stake.
⚙️Structure & Terms
Source: Credit Agreement Exhibit to 8-K
Commitment: $270.0 million
$240.0 single draw term loan fully funded at close
$30.0 revolving line of credit
Term Loan Amortization:
Year 1 - 2.50% per quarter
Year 2 - 1.75% per quarter
Year 3 - Maturity - 1.00% per quarter with balance due at Maturity
*Deal structure also includes an Excess Cash Flow Sweep
Maturity: July 25, 2031
Rate: Variable - SOFR + 6.00% with SOFR floor of 1.50%; ABR + 5.00%
*All-in rate is subject to First Lien Net Leverage Step Ups and Step Downs
Facility Fee: Not disclosed
Revolving Loan Undrawn Fee: 0.5%
Financial Covenant:
Max First Lien Net Leverage tested quarterly
Initially set to 6.0:1.00 with steps downs to 5.25:1.0