EXL, a global data and AI company, closed a new credit facility with PNC Bank as administrative agent, and a syndicate of lenders that allows for borrowings of up to $1 billion. Bank of America, JPMorgan Chase Bank and TD Bank acted as joint lead arrangers on this transaction.
The facility increases EXL’s borrowing capacity from the previous limit of $600 million and provides greater covenant flexibility to support the company’s business strategy. The five-year senior secured credit agreement includes a $400 million term loan, permits revolver borrowings of up to $600 million and has an accordion feature that would allow the facility to expand equal to the greater of $470 million or 100% of EBITDA for the trailing four quarters. The term of the new agreement will expire on August 18, 2031.
“This deal reflects the confidence our banking partners have in EXL’s financial strength and the long-term trajectory of our business,” Maurizio Nicolelli, chief financial officer of EXL, said. “We have consistently prioritized a strong balance sheet, and this expanded debt capacity gives us the flexibility to extend our competitive advantage through targeted mergers and acquisitions while continuing to return capital to our shareholders under our $500 million share repurchase authorization. The closing of this facility is a clear demonstration of the focused execution against our capital allocation strategy.”
