DigitalOcean Secures $500 Million Credit Facility in New Agreement

DigitalOcean Holdings, Inc., a New York-based cloud infrastructure provider, entered into a material definitive agreement on May 1, 2026, for a $500 million credit facility, according to the company's 8-K filing with the SEC on May 5, 2026.

The agreement affects DigitalOcean's access to capital, providing $350 million in term loans and a $150 million revolving credit line, per Item 1.01 and Item 2.03 of the filing. This impacts the company's 1.2 million customers, primarily small businesses and developers using its cloud services, by supporting expanded infrastructure investments without immediate equity dilution.

Prior to this, DigitalOcean operated under a 2023 credit facility capped at $300 million, per the company's previous SEC filings. The new agreement replaces that arrangement effective May 1, 2026, with interest rates ranging from 3.50 to 4.25 percent based on leverage ratios, and introduces covenants requiring maintenance of specific debt-to-EBITDA levels, as detailed in Exhibit 10.1 of the filing.

The credit facility triggers quarterly compliance certifications starting June 30, 2026, per the agreement terms quoted in the filing. Lenders gain rights to accelerate repayment if DigitalOcean breaches covenants, and the company must file additional disclosures in future 10-Q reports on usage of the funds.

Separately, the earnings release under Item 2.02 requires no immediate further action but sets the stage for the annual shareholder meeting where results will be discussed.

DigitalOcean reported this alongside first-quarter 2026 results showing revenue of $182 million, a 14 percent increase from the prior year, per Item 2.02 and Exhibit 99.1. The company last amended its credit terms in 2024 to support acquisitions, according to prior 8-K filings.