Information Services Group announced it has executed a new $70 million, five-year credit agreement with more favorable terms and extended maturity to mid-2018.

The new senior secured credit facility, arranged by Bank of America, is comprised of a $45 million term loan facility and a $25 million revolving credit facility. Interest rate spreads will range between 2.0%-3.5% over LIBOR in the new credit facility depending on the company’s leverage ratio compared to a fixed interest rate spread of 3.5% over LIBOR under its previous credit facility. ISG borrowed $55 million at closing to refinance its existing debt.

“Our strengthening financial performance, driven by our evolving advisory services and recurring revenue business model, has allowed us to take advantage of the favorable environment in the capital markets to lower our mandatory principal payments and borrowing costs over the life of the credit facility while enhancing our operational flexibility,” stated Michael P. Connors, chairman and CEO of ISG. “Coupled with a reduction in our overall debt by nearly $10 million since mid-March of 2012, the enhanced terms under the new credit facility will result in lower principal and interest payments and provide for an extension of our debt maturity to mid-2018. This will benefit our cash flow and earnings per share in the coming years and provide us with additional flexibility with respect to growth opportunities and shareholder-enhancing initiatives.”

Information Services Group is a technology insights, market intelligence and advisory services company.