Ebix, Inc., a leading provider of On-Demand software and E-commerce services to the insurance and financial industries, announced that it has closed on a $150,000,000 credit line as of August 5, 2014, to fund its growth and share repurchase initiatives. The Company signed the credit line with a syndicate of leading financial institutions that include Regions Bank, MUFG Union Bank, N.A., and Silicon Valley Bank, with Regions Bank as administrative agent and collateral agent. Regions Capital Markets, a division of Regions Bank, and MUFG Union Bank served as Joint Lead Arrangers on the transaction.
 
The Company put the credit facility in place to fund its future acquisition and share repurchase initiatives, as also to provide increased working capital to fund its growth initiatives. The credit line provides the Company with an expanded and flexible credit line, at lower rates than the present credit facility.
 
Robin Raina, President & CEO, Ebix Inc. said, "We are excited to have the support of leading financial institutions like Regions Bank, MUFG Union Bank, and Silicon Valley Bank, towards funding our future growth and share repurchase initiatives. Their faith in us is a testament to the strength of the fundamentals of Ebix, and I thank them for working with us to create a flexible expanded credit line at competitive affordable rates."
 
The new credit facility has the following key components –

•  A five year revolving credit facility for $150,000,000
• Ebix has the option to request an increase in the Credit Facilities of up to $200,000,000, without Lender approval, subject to receipt of additional lender commitments

The credit facility will bear an interest rate at closing equal to LIBOR plus a LIBOR margin of 1.75%. As of January 1, 2015, the LIBOR margin will be based on a leveraged-based pricing grid. Based on Ebix's estimates, the leveraged-based pricing grid would have resulted in a LIBOR margin of 1.50% as of closing.
 
The Company also announced that it now has access to total funds of approximately $150,000,000 to fund any of its working capital or any other growth and share repurchase initiatives. This includes the worldwide cash balances in the bank of approximately $ 33,000,000 in addition to available credit line of approximately $117,000,000 million after paying off the previous credit line of approximately $33,000,000.