Daily News: November 29, 2018

BofA Agents $670MM Facilities for EVERTEC

According to an 8-K filing, Bank of America served as administrative agent, collateral agent, swingline lender and L/C issuer on $670 million in new total credit facilities for EVERTEC. The facilities consist of a $125 million five-year revolving credit facility, a $220 million five-year term loan A and a $325 million six-year term loan B.

Joaquin Castrillo, EVERTEC chief financial officer, stated, “We are pleased to have completed the refinancing of our credit facilities. The upsized revolver will provide additional financial flexibility as we continue to execute on our growth strategy in Latin America.”

Proceeds from the new loans, a $10 million draw on the revolving credit facility, along with $15 million of cash on the balance sheet, were used to repay the company’s existing term debt ($191 million and $379 million of former term loan A and B, respectively).

The interest rate improved 25 basis points to LIBOR+225 for both the term loan A and the revolver, based on EVERTEC’s resulting consolidated leverage. The term loan B increased 100 basis points to LIBOR+350.

EVERTEC anticipates approximately $0.02 to $0.03 impact on adjusted earnings per share in 2019 due to increased interest expense resulting from the refinancing and excluding any impact from hedging activities.

EVERTEC is a full-service transaction processing business in Latin America, providing a broad range of merchant acquiring, payment processing and business solutions services. It manages a system of electronic payment networks that process more than two billion transactions annually and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing.