Pinterest signed a five-year $700 million revolving credit facility
On October 15, 2026, Pinterest, Inc. entered into an amended and restated five-year $700 million revolving credit facility, with JPMorgan Chase Bank, N.A. acting as administrative agent, and the facility replaced the company's previous $500.0 million revolving credit facility from October 25, 2022 sec.gov. Pinterest runs a software platform that sells advertising, and the new facility commits a larger pool of credit to the company, so the filing is a clean example of how a lender prices and structures a loan against a software company's future cash.
The idea. A lender to a services company is lending against future cash, so it asks how much of next year's revenue is already under contract, how concentrated the customers are, and how quickly the business could cut costs if revenue fell. Contracts with fixed terms and a history of renewals make that future cash easier to lend against.
What the document shows is the structure of the commitment. The facility provides $700 million of borrowing capacity, and an accordion option would let Pinterest increase the commitments by up to the greater of $1,000 million and 75% of consolidated EBITDA, provided Pinterest secures additional lender commitments and meets other conditions. Interest on borrowings accrues at either an adjusted term Secured Overnight Financing Rate with a margin of 1.25%, or an alternative base rate plus a margin of 0.25%, at Pinterest's election, and Pinterest pays an annual commitment fee of 0.10% on the unused portion. The facility also lets Pinterest issue letters of credit up to $75 million, which reduce the amount it can borrow, and Pinterest pays a fee that accrues at 1.25% per annum on the average aggregate daily maximum amount.
What an owner of a services company would see from the inside is how little of this is tied to fixed assets. The accordion option is measured partly against consolidated EBITDA, which means JPMorgan Chase and the other lenders agreed to size future credit against the earnings Pinterest generates. That is the idea block made concrete: a lender is lending against future cash, and it wants to know the cash is repeatable. Pinterest reaches advertisers through a software platform that runs continuously, and the filing's terms price that recurring cash.
What the buyer or lender is weighing shows up in the two fees. The 0.10% commitment fee on the unused portion is the price Pinterest pays to keep credit available even when it does not borrow, and the higher margins on drawn amounts, 1.25% over the adjusted term Secured Overnight Financing Rate or 0.25% over the alternative base rate, price the money only when Pinterest uses it. Those terms tell an owner what a lender asks a borrower to pay for certainty, and the accordion option shows the lender keeping room to advance more credit if the earnings that back the facility keep growing.
The event shows how lenders treat a firm where software is taking on the work customers pay for. Pinterest and JPMorgan Chase sized the facility, and its accordion option, against consolidated EBITDA, which ties the credit directly to the earnings the software platform produces. JPMorgan Chase and the other lenders committed capital to a software business on the strength of its future cash, with the accordion sized up to the greater of $1,000 million and 75% of consolidated EBITDA, and contracted Pinterest to pay a commitment fee on the portion it leaves unused.
The questions an owner should be ready to answer follow from the same logic. How much of next year's revenue is already under contract? How concentrated are the customers? How quickly could the business cut costs if revenue fell? A lender sizing credit against earnings wants to see contracts with fixed terms and a history of renewals, because those are the cash flows that make future borrowing easier to arrange.
What to watch is whether Pinterest uses the new capacity. The accordion option lets Pinterest add commitments up to the greater of $1,000 million and 75% of consolidated EBITDA, and any later filing that reports a draw or an increase in commitments will show whether the software platform is converting its future cash into borrowed capital.