SEI Investments gets new $300 million credit facility due 2017

By Toni Weeks

San Diego, Feb. 3 - SEI Investments Co. entered into a $300 million senior unsecured revolving credit facility due February 2017 on Thursday, replacing its $300 million five-year facility that was scheduled to expire in July 2012.

According to an 8-K filing with the Securities and Exchange Commission, the interest rate will be Libor plus 125 basis points to 200 bps, based on the company's leverage ratio. The company will also pay a quarterly commitment fee of 15 bps to 30 bps, also depending on the leverage ratio, on the unused portion of the facility.

Wholly owned subsidiaries of SEI have guaranteed the obligations of the company under the facility.

Wells Fargo Bank, NA is the administrative agent, and U.S. Bank NA is the syndication agent. Citizens Bank of Pennsylvania and Manufacturers and Traders Trust Co. are documentation agents. Wells Fargo Securities, LLC and U.S. Bank Na are joint lead arrangers and joint bookrunners. Additional lenders include Bank of America, NA and Bank of New York Mellon.

The new facility contains covenants that, among other things,

• Restrict the ability of the company and its subsidiaries to engage in mergers, consolidations, asset sales, investments and transactions with affiliates without the approval of lenders;

• Restrict the ability of the company to incur liens, subject in some cases to specific thresholds, without lender approval;

• Restrict the company from paying dividends on or repurchasing its capital stock in the event of a default without the approval of lenders; and

• Require the company to maintain the leverage ratio at not more than 1.75 to 1.00.

In the event of default caused by financial or economic events, corporate events or other events of default, all loans outstanding under the facility, including accrued interest and fees payable, would be due and payable, either automatically or after the company was notified. In either case, all commitments under the facility would be terminated.

SEI is an Oaks, Pa.-based provider of asset management, investment processing and investment operations solutions for institutional and personal wealth management.

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