Daily News: November 21, 2014

Wells, GE, J.P. Morgan Arrange $205MM ARC Refi

ARC Document Solutions announced it entered into a $205 million credit facility consisting of a term A loan facility in the amount of $175 million, and a revolving line of credit in the amount of $30 million.

ARC said with this transaction, the company expects to save more than $5 million in annual cash interest payments relative to its previous term B loan facility. Wells Fargo Securities, GE Capital Markets and J.P. Morgan Securities served as joint bookrunners and joint lead arrangers on the transaction.

The proceeds of the new term loan were used to repay the company’s former term B loan facility in full, and the new revolving line of credit replaces the company’s previously undrawn revolving line of credit in the amount of $40 million.

The new credit facility bears interest at per annum floating rates that are adjusted quarterly based on the company’s leverage ratio. Based on ARC’s leverage ratio at the closing, the company’s interest rate effective November 20, 2014, will be LIBOR plus 250 basis points. The credit facility was successfully syndicated to a group of lenders consisting primarily of commercial banks and has a term of five years that matures in November 2019.

Walnut Creek, CA-based ARC Document Solutions is a document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industries.