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Regions Led Banking Syndicate Approves $100MM Accordion Boost for Ebix

November 29, 2018, 07:13 AM
Filed Under: Insurance

Ebix, Inc., an international supplier of on-demand software, e-commerce and payment services to the insurance, financial and healthcare industries, announced the expansion of its existing syndicated credit facility through the funding of an additional $100 million utilizing the facility’s accordion feature.

The funding increase was provided by existing members of the ten-bank group who expanded their share of the credit facility. Interest rates for the facility are based on a leveraged-based pricing grid. An additional $50 million of incremental borrowing remains available under the facility’s accordion feature, bringing the facility’s total potential to $795 million considering the current loan amortization.

Including worldwide cash balances in excess of $110 million and $107 million in available borrowings, excluding the additional accordion feature, Ebix has access to approximately $217 million to fund working capital requirements, the Company’s growth initiatives and share repurchase program. For the 12 months ended September 30, 2018, Ebix’s net cash from operating activities increased 24.7% to $100.9 million, compared to $80.9 million in the comparable year-ago period.

Robin Raina, Ebix President and CEO, said, "We are gratified by the expanded credit facility support of our bank syndicate. This additional borrowing augments Ebix’s growing operating cash flow in funding our growth and value creation initiatives. Specifically, we tapped a portion of our facility’s accordion feature in order to provide liquidity for a few not yet disclosed accretive acquisition opportunities that we hope to complete and announce in the coming days. The contemplated purchases should provide at least $13 million in incremental annual operating income.”

Ebix’s syndicated bank group is comprised of the following ten financial institutions: Regions Bank, PNC Bank, BMO Harris Bank, Compass Bank, Fifth Third Bank, KeyBank, Bank of the West, Silicon Valley Bank, Cadence Bank and Trustmark National Bank. Regions Bank continued to lead the banking group while serving as the administrative and collateral agent. PNC Bank and BMO Capital Markets served as co-syndication agents, BBVA Compass and Fifth Third Bank served as co-documentation agent, and Regions Capital Markets, PNC Capital Markets and BMO Capital Markets acted as joint lead arrangers and joint book runners.


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