Daily News: March 4, 2014

SunTrust, Others Arrange $325MM Blackbaud Facility

Blackbaud announced that it entered into a new credit facility in the aggregate amount of $325 million, including a $175 million senior secured term A loan and a $150 million senior secured revolving credit facility with capacity to expand the facility incrementally by an additional $200 million, subject to certain terms and conditions. The aggregate facility matures on February 28, 2019.

SunTrust Robinson Humphrey, Bank of America Merrill Lynch and Fifth Third Bank acted as joint lead arrangers and joint bookrunners on the financing.

Tony Boor, Blackbaud’s SVP and CFO, commented, “In 2013, we were very effective at reducing our indebtedness, we significantly increased our cash flow from operations and we generated record operating profit. The current favorable market conditions provide an opportunity for us to enter into this new credit facility amidst strong oversubscription to optimize our capital structure and will enable greater flexibility for our company to pursue growth and invest in the business.”

Mike Gianoni, president and CEO of Blackbaud, remarked, “The new facility provides the company with increased operational and financial flexibility, lower capital costs, and an extended maturity, together with increased borrowing capacity to enable continued execution of our strategic priorities. We will continue to prudently allocate our capital as we continue to increase our high-quality recurring revenue streams and transition to a predominantly SaaS and cloud-based market environment.”

Charleston, SC-headquartered Blackbaud offers a full spectrum of cloud-based and on-premise software solutions and expertise to help organizations achieve their missions.