Euronet Worldwide, Inc. (Nasdaq:EEFT), a leading global electronic payments provider and distributor, today announces the closing of an amended and expanded five-year, $355 million senior secured credit facility ("Credit Facility") with a syndicate of financial institutions.
The Credit Facility consists of a $275 million revolving line of credit and an $80 million term loan. It replaces a $100 million revolving line of credit and $126 million term loan maturing April 2012 and April 2014, respectively.
The revolving line of credit allows for borrowings in U.S. dollars, euro, British pound sterling, Australian dollars and/or Indian rupees. Term loan and revolving line of credit borrowings will bear interest at short-term variable interest rates plus a leverage ratio-based margin. Subject to certain conditions, the Company has the option to increase the Credit Facility by up to an additional $205 million by requesting additional commitments from existing or new lenders. The Credit Facility requires the Company to meet certain covenants and conditions and establishes limits for certain restricted payments, including share and subordinated debt repurchases.
"We were very pleased to extend and expand our credit facility by receiving additional commitments from most of the banks in our existing facility and pleased that several new banks joined the group," comments Rick Weller, Chief Financial Officer of Euronet Worldwide, Inc. "The new Credit Facility gives us the flexibility and liquidity for short-term cash requirements, strategic growth initiatives as well as for general corporate purposes."