Dropbox (DBX) Completes New Secured Credit Agreement, Announces $1.2B Stock Repurchase Program

Dropbox, Inc. (Nasdaq: DBX), today announced entry into a Credit and Guaranty Agreement providing the Company with up to $2.0 billion in secured term loan due 2029 and a $1.2 billion stock repurchase program. The facility was led and substantially provided by Blackstone Credit & Insurance, who served as lead arranger and lead structuring agent, and proceeds may be used for working capital and general corporate purposes, including share repurchases.

The term loan facility includes a delayed draw feature with an initial borrowing of $1.0 billion and subsequent access to up to an additional $1.0 billion.

In connection with entry into the Credit Agreement, the Company terminated its existing Revolving Credit and Guaranty Agreement, dated as of March 20, 2014.

The Company also announced the authorization of a new share repurchase program for the purchase of an additional $1.2 billion of its Class A common stock.

Following this transaction, the Company announced that it expects to meet or exceed its Q4 and FY 2024 financial guidance as described in its investor supplement posted on November 7, 2024.

“As we near the end of 2024, we’re excited to announce the successful raise of up to $2 billion in secured term loans and the authorization of a new $1.2 billion share repurchase program,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston. “This transaction facilitates our ongoing commitment to return capital to shareholders and further invest in our strategy to accelerate the growth of our new products, including Dropbox Dash, to create even more long-term value.”

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