Company Update (NASDAQ:EBIX): Ebix Inc Increases Credit Facility to $240 Million With Addition of TD Bank to Lending Group
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 $190.0 million to $240 million, to fund its growth and share repurchase initiatives. The $50.0 million increase in the bank line was the result of members of the existing bank group expanding its share of the credit facility as also the addition of TD Bank, N.A. to the Banking Syndicate, which further diversifies Ebix’s lending group under the credit facility to five participants.
The increase in total commitments was executed under the accordion feature of the credit facility, which allowed for an increase in total commitments under the facility up to $240.0 million, in the aggregate. The credit facility originally closed August 5, 2014 and all other terms remain substantially unchanged.
The syndicated bank group comprises leading financial institutions that include Regions Bank, MUFG Union Bank, N.A., Fifth Third Bank, TD Bank N.A. and Silicon Valley Bank. Regions Capital Markets, a division of Regions Bank, served as Lead Arranger on the transaction.
Robin Raina, President and CEO, Ebix Inc. said, “We are excited to have the support of leading financial institutions like Regions Bank, MUFG Union Bank, Fifth Third Bank, Silicon Valley Bank and now TD Bank towards funding our future growth and share repurchase initiatives. We were able to get the credit line increased by $50 million with only one new bank being needed to fund this. That by itself is a testament to the strength of our existing bank group and their continued faith in the fundamental operating and financial strength of Ebix.” (Original Source)
Shares of Ebix closed yesterday at $25.01. EBIX has a 1-year high of $38.04 and a 1-year low of $12.64. The stock’s 50-day moving average is $26.96 and its 200-day moving average is $30.43.
Ebix Inc provides a series of application software products for the insurance industry from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.