Ebix amends covenants of credit agreement, adopts SOFR

By Mary-Katherine Stinson

Lexington, Ky., Feb. 22 – Ebix, Inc. on entered amendment No. 13 on Tuesday to credit documents relating to its existing credit agreements with Regions Bank as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the maturity date to May 23, 2023 from Feb. 21, 2023 for both the revolving line of credit and the term loan, which was conditioned on, among other things, the company making a $5 million revolver prepayment and paying a customary consent fee.

The amendment also increases the applicable margin for the facilities under the credit agreement to 700 basis points for SOFR loans and letter-of-credit fees and replaces the adjusted Libor with SOFR with a credit spread adjustment of 10 basis points for one-month interest periods and 15 bps for three-month interest periods.

Amendment No. 13 modifies certain repayment provisions in the agreement ensuring that each repayment of the revolver shall be accompanied by a corresponding reduction of the aggregate revolving commitments, and amounts repaid on the revolver will not be available to be reborrowed. The company will also be required to make an amortization payment on the term loan in an amount of $5 million for the fiscal quarter ending March 31.

Other covenants were also modified including those relating to certain additional reporting requirements and those eliminating or decreasing capacity under certain negative covenant baskets.

The company issued a press release announcing the effectiveness of amendment No. 13 and explaining that the amendment will result in an about 1% annual interest rate increase for the interest period beginning on Feb. 21.

Ebix is an Atlanta-based company that supplies on-demand software and e-commerce services to the insurance industry.

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