Ebix, Inc., a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, announced the expansion of its existing credit facility from $240 million to $400 million, to fund its growth and share repurchase initiatives.

The $160 million increase in the bank line was the result of many members of the existing bank group expanding their share of the credit facility and the addition of PNC Bank, BMO Harris Bank, KeyBank, HSBC Bank, Cadence Bank and Trustmark National Bank to the Banking Syndicate, which further diversifies Ebix's lending group under the credit facility to eleven participants.

The syndicated bank group now comprises eleven leading financial institutions that include Regions Bank, PNC Bank, TD Bank N.A., BMO Harris Bank, KeyBank, MUFG Union Bank N.A., Fifth Third Bank, HSBC Bank, Silicon Valley Bank, Cadence Bank and Trustmark National Bank. Regions Bank continued to lead the banking group while serving as the administrative and collateral agent. PNC Bank and TD Securities (USA) were added as syndication agents, KeyBank as documentation agent, while Regions Capital Markets, PNC Capital Markets and TD Securities (USA) acted as joint lead arrangers and joint bookrunners. 

The new credit facility has the following key components: a five-year term loan for $125 million and a five-year revolving credit facility for $275 million.

The new credit facility also allows for up to $100 million of incremental facilities. As of closing, the facility interest rates will be based on a leveraged-based pricing grid, which based on Ebix's estimates, is expected to be 2.25% as of closing.

The company also announced that it now has access to total funds of approximately $250 million to fund any of its working capital or any other growth and share repurchase initiatives. This includes the worldwide cash balances in the bank of approximately $70 million in addition to available credit line of approximately $180 million.

Robin Raina, President and CEO, Ebix Inc. said, "We are excited to have the support of eleven leading financial institutions towards funding our future growth initiatives. We thank our existing five banks that have continued to repose faith in our fundamentals, as also welcome six new banks to the expanded banking syndicate. The support of the banks has been overwhelming with the credit line commitments being oversubscribed strongly. We feel that our expanded banking syndicate comprises a world class banking group that has the capacity and intent to keep pace with our projected growth trajectory."

A leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, Ebix, Inc., provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry.