Citibank, Others Provide $100MM Facility to Ebix
Ebix, Inc, a supplier of On-Demand software and E-commerce services to the insurance industry, entered into a credit agreement providing for a $100 million secured syndicated credit facility with Citibank, as administrative agent and Citibank, N.A., Wells Fargo Capital Finance, and RBS Citizens as joint lenders.
The financing is comprised of a four-year, $45 million secured revolving credit facility, a $45 million secured term loan which amortizes over a four year period with quarterly principal and interest payments commencing on June 30, 2012 and a final payment of all remaining outstanding principal and accrued interest due on April 26, 2016, and an accordion feature that provides for the expansion of the credit facility by an additional $10 million.
“We are pleased with the confidence of our new lenders in the strength of Ebix’s financial health and business strategy,” said Ebix Chairman, President and CEO Robin Raina. “The new credit agreement gives us greater financial flexibility than our previous facility and allows Ebix to return capital to shareholders and continue to invest in acquisitions.”
The new $100 million credit facility with Citibank replaces the former $55 million facility that the company had in place with Bank of America.
The initial interest rate applicable to the Secured Syndicated Credit Facility is LIBOR plus 1.50%. Under the Secured Syndicated Credit Facility the maximum interest rate that could be charged depending upon the Company’s leverage ratio is LIBOR plus 2.00%.