Ebix, a provider of on-demand software and E-commerce services to the insurance and financial industries, announced it has closed on a $150.0 million credit line to fund its growth and share repurchase initiatives.
Ebix said it signed the credit line with a syndicate of leading financial institutions that include Regions Bank, MUFG Union Bank and Silicon Valley Bank, with Regions Bank as administrative agent and collateral agent. Regions Capital Markets, a division of Regions Bank, and MUFG Union Bank served as joint lead arrangers on the transaction.
The credit facility will bear an interest rate at closing equal to LIBOR plus a LIBOR margin of 1.75%. As of January 1, 2015, the LIBOR margin will be based on a leveraged-based pricing grid. Based on Ebix’s estimates, the leveraged-based pricing grid would have resulted in a LIBOR margin of 1.50% as of closing.
Robin Raina, president & CEO, Ebix said, “We are excited to have the support of leading financial institutions like Regions Bank, MUFG Union Bank and Silicon Valley Bank towards funding our future growth and share repurchase initiatives. Their faith in us is a testament to the strength of the fundamentals of Ebix, and I thank them for working with us to create a flexible expanded credit line at competitive affordable rates.”