Upwork secures $150M revolving credit facility from Bank of America
What's the deal? Upwork has secured a $150 million secured revolving credit facility with Bank of AmericaDealroom has a profile for this one. Try Dealroom →, the freelancing marketplace announced.
The agreement, signed June 23, 2026, names Bank of America as administrative agent, with BofA SecuritiesDealroom has a profile for this one. Try Dealroom → and Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom → as joint lead arrangers and bookrunners.
The facility includes a $10 million sublimit for standby letters of credit and an option to add up to $50 million more through loan increases or new term loans.
Proceeds can fund working capital, general corporate purposes, repaying existing convertible debt, transaction fees, and potential acquisitions.
Why now? The deal gives Upwork flexibility to repurchase or repay convertible debt while keeping cash available for deals.
The facility matures June 23, 2029. Borrowings carry interest at Term SOFR plus 2.00% to 2.50%, or the Base Rate plus 1.00% to 1.50%, depending on Upwork's net leverage ratio.
What could go wrong? The facility is secured by substantially all assets of Upwork and its domestic subsidiaries, raising the stakes if the company stumbles.
The agreement also carries covenants limiting Upwork's ability to take on debt, incur liens, make certain payments, and sell assets. It must maintain set leverage and fixed charge coverage ratios.
The signal: A late-stage marketplace like Upwork tapping a secured credit line backed by corporate lender Bank of America rather than raising fresh equity points to a company confident in its cash generation and wary of dilution. With the option to nearly double the facility for acquisitions, Upwork appears positioned to consolidate as the freelance market matures.
Read more: StreetInsider
Image credit: "Kristine Lauria of Upwork at Tech in Asia Singapore 2015" by Tech in Asia is licensed under CC BY-SA 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-sa/2.0/.
