Blackstone Inc has increased its private credit facility for Dropbox Inc to $2.7bn, adding $700m to the original $2bn loan arranged last December to support the file-sharing company’s stock repurchase program, according to a repot by Bloomberg.
The expanded delayed draw term loan can be used to repay Dropbox’s outstanding convertible senior notes maturing in 2026. The move comes alongside a new $1.5bn share buyback authorisation.
Dropbox is part of a growing trend of public companies turning to direct lenders for flexible financing solutions. Earlier this year, Blackstone and Apollo backed Thoma Bravo’s acquisition of Boeing’s flight navigation unit, while Meta enlisted Pacific Investment Management and Blue Owl Capital for a $29bn data centre financing in August.
Despite these measures, Dropbox faces market headwinds, with its stock rising less than 3% year-to-date compared with a roughly 10% gain for the broader market.
