Block increases revolving credit facility to $900 million

Block Inc. (NYSE: SQ) amended its revolving credit agreement on January 14, 2026, increasing its unsecured loan facility from $775 million to $900 million, according to a company statement.

The restated credit agreement replaces the company's previous revolving credit agreement from May 1, 2020, with Goldman Sachs Bank USA serving as administrative agent. The facility matures on January 14, 2031, with provisions for earlier maturity under certain conditions related to Block's existing convertible or senior notes.

Block may use proceeds from the facility for working capital and general corporate purposes. As of the agreement date, no borrowings or letters of credit were outstanding under the credit facility.

Interest rates on loans under the agreement vary based on Block's selection of either Term SOFR or base rate options. Term SOFR-based loans carry interest rates of Term SOFR plus margins between 1.25% and 1.75%, depending on the company's total net leverage ratio. Base rate loans use the highest of prime rate, federal funds rate plus 0.50%, or one-month Term SOFR plus 1.00%, with additional margins ranging from 0.25% to 0.75%.

The agreement includes standard financial covenants, requiring Block to maintain a maximum total net leverage ratio measured quarterly. Additional covenants restrict debt incurrence, lien grants, and certain investments by Block and its subsidiaries.

The restated credit agreement contains customary events of default, including payment defaults, covenant violations, cross acceleration provisions, and bankruptcy events. Such defaults could result in termination of lender commitments and acceleration of obligations under the facility.

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