Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
financial and healthcare industries, today announced the expansion
of its existing credit facility from $450 Million to $650 Million,
to assist in funding its growth.
The $200 Million increase in the bank line was
the result of many members of the existing bank group expanding
their share of the credit facility and the addition of BBVA Compass
and Bank of the West to the Banking Syndicate, which further
diversifies Ebix’s lending group under the credit facility to ten
participants.
The syndicated bank group now comprises ten
leading financial institutions that include Regions Bank, PNC Bank,
BMO Harris Bank, Compass Bank, Fifth Third Bank, KeyBank, Bank of
the West, Silicon Valley Bank, Cadence Bank and Trustmark National
Bank. Regions Bank continued to lead the banking group while
serving as the administrative and collateral agent. PNC Bank and
BMO Capital Markets served as co-syndication agents, BBVA Compass
and Fifth Third Bank served as co-documentation agent, and Regions
Capital Markets, PNC Capital Markets and BMO Capital Markets acted
as joint lead arrangers and joint book runners.
The new credit facility has the following key
components;
- A 5-year term loan for $250
Million
- A 5-year revolving credit facility
for $400 Million
The new credit facility also allows for up to
$150 Million of incremental facilities. As of closing, the facility
interest rates will be based on a leveraged-based pricing grid.
The Company also announced that it now has
access to total funds of approximately $331 Million to fund any of
its working capital or any other growth and share repurchase
initiatives. This includes the worldwide cash balances in the bank
of approximately $85 Million in addition to available credit line
of approximately $246 Million.
Robin Raina, President and CEO, Ebix Inc. said,
"We are excited to have the support of ten leading financial
institutions towards funding our future growth initiatives. We
thank our existing eight banks that have continued to repose faith
in our fundamentals, as also welcome two new banks to the expanded
banking syndicate. The support of the banks has been overwhelming
with the credit line commitments being oversubscribed strongly. We
feel that our expanded banking syndicate comprises a world class
banking group that has the capacity and intent to keep pace with
our projected growth trajectory.”
About Regions Financial
CorporationRegions Financial Corporation (NYSE:RF), with
$124 Billion in assets, is a member of the S&P 500 Index and is
one of the nation’s largest full-service providers of consumer and
commercial banking, wealth management, mortgage, and insurance
products and services. Regions’ Corporate Banking Group serves
public and private companies throughout the bank’s geographic
footprint as well as across the United States through its
Specialized Industry groups. Regions Capital Markets, a division of
Regions Bank, provides products and services including syndicated
loan facilities, interest rate, commodity and foreign exchange risk
hedging. Operating under wholly owned subsidiaries of Regions
Financial Corporation, Regions provides advisory and certain
capital raising services. Regions Securities LLC serves as a
broker-dealer to corporate and commercial clients, and BlackArch
Partners LLC offers merger and acquisition services.
About Ebix, Inc.
With 50+ offices across 5 continents, Ebix,
Inc., (NASDAQ:EBIX) endeavors to provide On-Demand software and
E-commerce services to the insurance, financial and healthcare
industries. In the Insurance sector, the Company’s main focus is to
develop and deploy a wide variety of insurance and reinsurance
exchanges on an on-demand basis, while also, providing
Software-as-a-Service ("SaaS") enterprise solutions in the area of
CRM, front-end & back-end systems, outsourced administrative
and risk compliance, across the world.
With a "Phygital” strategy that combines 231,500
physical distribution outlets in many Southeast Asian Nations
(“ASEAN”) countries to an Omni-channel online digital platform, the
Company’s EbixCash Financial exchange portfolio encompasses
leadership in areas of domestic & international money
remittance, travel, pre-paid & gift cards, utility payments,
etc., in an emerging country like India. EbixCash, through
its travel portal Via.com, is also one of Southeast Asia’s leading
travel exchanges with over 110,000 distribution outlets and 8,000
corporate clients processing over 24.5 million transactions every
year.
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific technology
professionals to provide products, support and consultancy to
thousands of customers on six continents. For more
information, visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING
STATEMENTS
As used herein, the terms “Ebix,” “the Company,”
“we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation,
and its consolidated subsidiaries as a combined entity, except
where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release
contains forward-looking statements and information within the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. This
information includes assumptions made by, and information currently
available to management, including statements regarding future
economic performance and financial condition, liquidity and capital
resources, acceptance of the Company’s products by the market, and
management’s plans and objectives. In addition, certain statements
included in this and our future filings with the Securities and
Exchange Commission (“SEC”), in press releases, and in oral and
written statements made by us or with our approval, which are not
statements of historical fact, are forward-looking statements.
Words such as “may,” “could,” “should,” “would,” “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “seeks,” “plan,”
“project,” “continue,” “predict,” “will,” “should,” and other words
or expressions of similar meaning are intended by the Company to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are found at various places throughout
this report and in the documents incorporated herein by reference.
These statements are based on our current expectations about future
events or results and information that is currently available to
us, involve assumptions, risks, and uncertainties, and speak only
as of the date on which such statements are made.
Our actual results may differ materially from
those expressed or implied in these forward-looking statements.
Factors that may cause such a difference, include, but are not
limited to those discussed in our Annual Report on Form 10-K and
subsequent reports filed with the SEC, as well as: the risk of an
unfavorable outcome of the pending governmental investigations or
shareholder class action lawsuits, reputational harm caused by such
investigations and lawsuits, the willingness of independent
insurance agencies to outsource their computer and other processing
needs to third parties; pricing and other competitive pressures and
the Company’s ability to gain or maintain share of sales as a
result of actions by competitors and others; changes in estimates
in critical accounting judgments; changes in or failure to comply
with laws and regulations, including accounting standards, taxation
requirements (including tax rate changes, new tax laws and revised
tax interpretations) in domestic or foreign jurisdictions; exchange
rate fluctuations and other risks associated with investments and
operations in foreign countries (particularly in Australia and
India wherein we have significant operations); equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; and international conflict, including
terrorist acts.
Except as expressly required by the federal
securities laws, the Company undertakes no obligation to update any
such factors, or to publicly announce the results of, or changes to
any of the forward-looking statements contained herein to reflect
future events, developments, changed circumstances, or for any
other reason.
Readers should carefully review the disclosures
and the risk factors described in the documents we file from time
to time with the SEC, including future reports on Forms 10-Q and
8-K, and any amendments thereto.
You may obtain our SEC filings at our website,
www.ebix.com under the “Investor Information” section, or over the
Internet at the SEC’s web site, www.sec.gov.
CONTACT:
Darren Joseph
678 -281-2027 or IR@ebix.com
David Collins, Chris Eddy
Catalyst IR - 212-924-9800 or ebix@catalyst-ir.com
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