- Information Services Corporation (ISV) has reached an agreement with its lenders to expand its secured credit facility to C$150 million
- The new credit facility agreement nearly doubles the facility’s original amount of $80 million for a term of two years
- As of August 5, ISC had already withdrawn $76.5 million from the credit facility, prompting the need for an increase
- The company will use the new credit facility to finance acquisitions, capital expenditures, and general corporate purposes
- Information Services Corporation (ISV) is up 1.96 per cent and is currently trading at $17.69 per share
Information Services Corporation (ISV) has reached an agreement with its lenders to expand its secured credit facility to C$150 million.
The new credit facility agreement nearly doubles the facility’s original amount, which was $80 million. As of August 5, 2020 the company had already withdrawn $76.5 million from the credit facility. This represented approximately 95.62 per cent of the original credit facility’s amount.
ISC used the drawn funds to re-finance amounts under previous facilities, including the company’s recent acquisition of Paragon Inc assets. The acquisition of the assets took place through ISC’s wholly owned subsidiary, ESC Corporate Services.
With only 4.37 per cent of the original credit facility left to drawn upon, ISC saw the need to renegotiate an increase. Starting August 5, 2020, the new $150 million amount will be available on a revolving basis, for two years.
The company will mainly use the new credit facility to finance permitted acquisitions and capital expenditures. Some of the credit facility funds may also go towards ISC’s general corporate purposes.
The Royal Bank of Canada is currently the company’s administrative agent. RBC Capital Markets and the Canadian Imperial Bank of Commerce are the joint lead arrangers and joint bookrunners.
ISC’s President and CEO, Jeff Stusek, commented on the benefits of the company’s expanded credit facility.
“We are extremely pleased to have concluded this new credit facility agreement, which provides us with greater flexibility and strengthens our financial position,” he said.
Information Services Corporation (ISV) is up 1.96 per cent and is trading at $17.69 per share at 12:20pm EDT.
