Daily News: February 27, 2018

Regions Upsizes Ebix Facility to $650MM

Ebix expanded its existing credit facility from $450 million to $650 million to assist in funding its growth

The $200 million increase in the bank line was the result of many members of the existing bank group expanding their share of the credit facility and the addition of BBVA Compass and Bank of the West to the banking syndicate, now has 10 participants.

The syndicated bank group now includes 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 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.

The new credit facility has the following key components;

  • A five-year term loan for $250 million
  • A five-year revolving credit facility for $400 million

The new credit facility also allows for up to $150 million of incremental facilities. As of closing, the facility interest rates will be based on a leveraged-based pricing grid.

The company now has access to total funds of approximately $331 million to fund any of its working capital or any other growth and share repurchase initiatives.

Robin Raina, president and CEO of Ebix, said, “We are excited to have the support of ten leading financial institutions towards funding our future growth initiatives. We thank our existing eight banks that have continued to repose faith in our fundamentals and also welcome two new banks to the expanded banking syndicate. We feel that our expanded banking syndicate comprises a world class banking group that has the capacity and intent to keep pace with our projected growth trajectory.”

With 50+ offices across five continents, Atlanta-based Ebix provides on-demand software and e-commerce services to the insurance, financial and healthcare industries.