Jack Henry obtains $180 million two-year term loan agreement

By Wendy Van Sickle

Columbus, Ohio, May 22 – Jack Henry & Associates, Inc. entered into a two-year, $180 million term loan agreement on May 16 with Truist Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The term loans bear interest at adjusted term SOFR plus a margin ranging from 75 basis points to 150 bps, depending on leverage ratio.

Truist Securities, Inc. and Regions Capital Markets are the lead arrangers and bookrunners.

Financial covenants require the company to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.5x and a maximum ratio of consolidated funded indebtedness consolidated EBITDA of 3.25x with a step-up to 3.5x for four consecutive quarters following an acquisition with a purchase price of at least $100 million.

Also on May 16, Jack Henry amended its credit agreement dated Aug. 31, 2022 with U.S. Bank, NA as administrative agent to permit the company to enter the term loan agreement and make conforming changes. Proceeds of the term loan were used to pay down the revolver provided for by that credit agreement.

Jack Henry is a Monett, Mo.-based provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations.

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