Ebix, a supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries, signed an amendment to its existing credit agreement, extending the maturity date of the company’s revolving line of credit and term loan to Sept. 30. According to a filing with the SEC, Regions Bank is the administrative agent and collateral agent for the agreement.
The extension is conditioned upon, among other things, Ebix making a $5 million payment of the term loan by June 30 and paying a customary consent fee, which will be payable over time and partially waived if certain conditions are met.
The amendment also specifically provides for the application of a certain percentage of the proceeds from certain liquidity events toward payment of outstanding principal and interest obligations. These events would include the mandatory public listing of the shares of the company’s subsidiary, EbixCash Limited, on the Indian stock market by July 31; the proceeds from the issuance of any additional debt and/or securities, if raised by the company; and the proceeds from the monetization of any asset sale, if carried out by the company.
The amendment also increases the applicable margin for the facilities under the credit agreement to 7.5% per annum for SOFR loans and letter of credit fees and 6.5% per annum for base rate loans. It also further increases the applicable margin for the facilities under the credit agreement on Aug. 31 to 8% per annum for SOFR loans and letter of credits fees and 7% per annum for base rate loans.
“We are committed to the aspirational goal of a debt-free Ebix in the year 2023 itself,” Robin Raina, president and CEO of Ebix, said. “This extension allows us the time to take various steps towards achieving that end goal.”
