Ebix enters into $100 million secured revolver, term loan due 2016

By Marisa Wong

Madison, Wis., May 1 - Ebix, Inc. entered into a $100 million secured syndicated credit facility on April 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Citibank, NA, Wells Fargo Capital Finance, LLC and RBS Citizens, NA are the joint lead arrangers, and Citibank is the administrative agent.

The financing is comprised of a $45 million secured revolving credit facility, a $45 million secured term loan and an accordion feature that can expand the credit facility by an additional $10 million.

The facility is due April 26, 2016.

Interest is equal to Libor plus 150 basis points to 200 bps, depending on the company's leverage ratio. The initial interest rate is Libor plus 150 bps, or 1.74%.

The $100 million credit facility replaces the company's $55 million facility dated Feb. 12, 2010 with Bank of America, NA. The prior facility, with $45.14 million outstanding, was fully paid and terminated on April 26.

Atlanta-based Ebix provides software for the insurance industry.

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