Ebix taps $101.25 million portion of term loan accordion feature

By Wendy Van Sickle

Columbus, Ohio, Nov. 28 – Ebix, Inc. exercised a $101.25 million portion of the $150 million accordion option of its secured credit facility with Regions Bank as administrative agent on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The transaction increased the total term loan commitment under the facility to $351.25 million.

Including cash balances in excess of $110 million and $107 million in available borrowings, excluding the additional accordion availability, Ebix said in a press release that it has access to about $217 million to fund working capital requirements, growth initiatives and its share repurchase program.

“This additional borrowing augments Ebix’s growing operating cash flow in funding our growth and value creation initiatives,” Robin Raina, Ebix president and chief executive officer, said in the release.

“Specifically, we tapped a portion of our facility’s accordion feature in order to provide liquidity for a few not yet disclosed accretive acquisition opportunities that we hope to complete and announce in the coming days. The contemplated purchases should provide at least $13 million in incremental annual operating income.”

Regions Capital Markets, PNC Capital Markets and BMO Capital Markets are the joint lead arrangers and joint bookrunners of the credit facility. PNC Bank and BMO Capital Markets are co-syndication agents. BBVA Compass and Fifth Third Bank are co-documentation agents.

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

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