Credit Facilities

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Credit Facilities

Note 12. Credit Facilities

On April 20, 2016, the Company amended its revolving credit agreement, or the senior credit facility, with SVB and entered into a new subordinated loan and security agreement, or subordinated loan agreement, with SVB and ORIX Ventures, LLC. The Company incurred a total of $20.0 million in term loan borrowings under these agreements in 2016.

Using the proceeds from the IPO, on September 28, 2016, the Company repaid the $10.0 million principal amount of term borrowings under the senior credit facility, which is no longer available, and the $10.0 million principal amount of term borrowings under the subordinated loan and security agreement. In addition, the Company paid a debt prepayment penalty and a final payment fee in the aggregate amount of $0.2 million in connection with the foregoing repayment under the subordinated loan and security agreement. Unamortized debt issuance costs of $0.5 million were expensed and recorded as interest expense in the consolidated statements of operations in the year ended December 31, 2016. The subordinated loan agreement was extinguished as a result of the repayment and no amounts were available to the Company under this agreement as of December 31, 2016.

The Company can incur revolver borrowings on a borrowing base tied to the amount of eligible accounts receivable, not to exceed $15.0 million. Interest on the revolver borrowings accrues at a floating rate equal to the prime rate and is payable monthly. The revolver matures on June 16, 2017. No amounts were outstanding under the senior credit facility as of December 31, 2016 or 2015.

The senior credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness, incur encumbrances, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. If the Company’s cash and cash equivalents, as defined in the senior credit facility, are below $25.0 million as of the last day of the applicable monthly measuring period, the Company will be required to comply with a financial covenant based on subscription and professional services bookings. This financial covenant is measured both monthly and quarterly, generally on a trailing six month basis. The Company was in compliance with all covenants as of December 31, 2016. The Company’s obligations under the senior credit facility are secured by substantially all of the assets of the Company other than intellectual property.