CareCredit - Women's Health April 2024

Block Gains Flexibility With Latest Amendment to Revolving Credit Agreement

Block has entered into the eighth amendment to its revolving credit agreement with its lenders and the administrative agent, Goldman Sachs Bank USA.

This amends a revolving credit facility that dates back to May 1, 2020, the company said in a Monday (April 1) filing with the Securities and Exchange Commission (SEC).

The parties have agreed to “amend certain provisions of the Amended Credit Agreement to provide Block and its subsidiaries additional flexibility with respect to warehouse facilities, securitization facilities or receivables financings involving accounts receivable or other rights to payment,” the filing said.

Block is the parent company of Square, Cash App, Spiral and TBD, which serve diverse audiences but share the mission of “expanding access to the economy.”

Block CEO Jack Dorsey said in February that the company is focusing on its banking efforts and aiming to become “the best choice and the first choice for anyone who’s making $150,000 to see Cash App as their primary bank.”

The company’s banking efforts are marked by no fees and early direct deposit availability, PYMNTS noted when reporting on Block’s Feb. 22 earnings call. It aims to drive its adoption as these users’ primary bank by converting its base of 56 million transacting active users — who mostly use P2P and Cash App Card — into active users who deposit their paycheck into Cash App.

“We’re focused on the new products and the features that drive engagement,” Dorsey said during the call.

In another development, it was reported Feb. 22 that Block began job cuts in January and aims to reduce its workforce from over 13,000 to 12,000 by the end of 2024.

The company said in November that it aims to streamline operations and optimize efficiency in the face of market pressures. Its move came amid economic uncertainty, high interest rates and layoffs affecting a range of companies in the tech industry.

“We are creating an absolute cap on the number of people we have at the company, held firm at 12,000 people until we feel the growth of the business has meaningfully outpaced the growth of the company,” Dorsey said in a November letter to shareholders.