Credit Memorandum
Meridian SaaS Co. — Monitoring Update
Confidential · Internal Use Only
Facility Summary
Meridian SaaS Co. entered a $15.0M venture debt term loan on June 1, 2024. The facility carries four financial covenants tested monthly.
Operating Performance
ARR grew steadily through month 18 before decelerating sharply. Management attributes the M19 churn spike to the loss of two enterprise logos.Needs Review
Liquidity & Burn
Trailing runway compressed from over 20 months at origination to 0.4 months as of the current reporting period. The Net Burn Multiple breached the 2.5x cap in month 19 and has remained above the threshold since.
Recommendation
The borrower has sufficient enterprise pipeline coverage to return to compliance within two quarters.Needs Review Recommended action: issue a covenant reservation-of-rights letter and request an updated 13-week cash forecast.