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Blackbaud Announces New Credit Facility with an Extended TermCHARLESTON, S.C., June 5, 2017 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced that it entered into a new credit facility on June 2 in the aggregate amount of $700 million, including a $300 million senior secured term loan and a $400 million senior secured revolving credit facility with capacity to incrementally expand the facility by an additional $200 million or a greater amount determined by a pro forma net leverage ratio test, subject to certain terms and conditions. Blackbaud borrowed $300 million under the term loan and $110 million under the revolving loan, which was used to repay in full Blackbaud's indebtedness under its existing credit facility, pay certain fees and expenses that were incurred in connection with the new credit facility and for other general corporate purposes. The new credit facility, which matures on June 2, 2022, replaces the existing credit facility entered into in 2014. Merrill Lynch, Pierce, Fenner & Smith Incorporated, PNC Capital Markets LLC, Wells Fargo Securities, LLC and Regions Capital Markets, a division of Regions Bank, acted as Joint Lead Arrangers and Joint Bookrunners on the financing. "Our success in executing the strategy we laid out in 2014 caused us to 'outgrow' the existing credit facility as our free cash flow will have increased by 32 percent from 2014 through 2017, despite having become a full cash tax payer during this period," said Tony Boor, Blackbaud's executive vice president and chief financial officer. "The credit markets remain strong for companies with solid financial performance and we took advantage of this market as our existing credit facility would have expired within two years. We've entered into a facility that is designed to grow with our business and offers us greater flexibility as we pursue our long term aspirational goals." "The new facility provides Blackbaud with lower capital costs, an extended maturity and increased borrowing capacity for continued execution against our strategic priorities," said Mike Gianoni, Blackbaud president and CEO. "It also gives us the operational and financial flexibility needed for delivering on our commitment to bring customers unmatched, forward-looking innovation as we grow, expand our total addressable market and invest in our business in accordance with our four-prong strategic plan." About Blackbaud
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/blackbaud-announces-new-credit-facility-with-an-extended-term-300468794.html SOURCE Blackbaud |