Revolving Line of Credit

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Revolving Line of Credit

Revolving Line of Credit

On September 30, 2019, we entered into a $400 million credit agreement with various lender parties and Wells Fargo Bank, National Association, as Administrative Agent (the “Credit Agreement”). The Credit Agreement provides for a revolving credit line up to $400 million, including a $25 million sublimit for letters of credit. The Credit Agreement matures on September 30, 2024. The new Credit Agreement replaces Tyler’s existing $300 million secured credit facility, which was scheduled to mature in November 2020. Borrowings under the Credit Agreement may be used for general corporate purposes, including working capital requirements, acquisitions and share repurchases.

Borrowings under the Credit Agreement bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.125% to 0.75% or (2) the one-, two-, three-, or six-month LIBOR rate plus a margin of 1.125% to 1.75%. As of September 30, 2019, the interest rates were 5.25% under the Wells Fargo Bank's prime rate and approximately 3.14% under the 30-day LIBOR option. The Credit Agreement requires us to maintain certain financial ratios and other financial conditions and prohibits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens. As of September 30, 2019, we were in compliance with those covenants.

As of September 30, 2019, we had no outstanding borrowings under the Credit Agreement, and available borrowing capacity was $400.0 million.