CSG Systems gets amended $350 million five-year term loan, revolver

By Susanna Moon

Chicago, Feb. 4 – CSG Systems International, Inc. obtained an amended $150 million five-year term loan and $200 million five-year revolving loan facility, according to an 8-K filing with the Securities and Exchange Commission.

Interest was reduced to Libor plus 175 basis points to 275 bps based on leverage. Interest on the term loan is initially Libor plus 175 bps.

Pricing on the term loan was cut by 25 bps over the previous rate, the filing noted.

The unused fee on the revolver will be 25 bps, with a range from 25 bps to 37.5 bps.

The company entered into the $350 million credit agreement on Feb. 3 with RBC Capital Markets, Wells Fargo Securities, LLC, HSBC Bank USA, NA, BBVA and Bank of America Merrill Lynch as joint lead arrangers and joint bookmanagers.

Wells Fargo Bank, NA is the syndication agent; HSBC Bank USA, NA, BBVA Compass and Bank of America, NA are the co-documentation agents; Royal Bank of Canada is the administrative agent and collateral agent; and Royal Bank of Canada is the issuing bank and swingline lender.

With the $150 million proceeds from the term loan, CSG said it repaid the outstanding $120 million balance of the term loan under the 2012 credit agreement, resulting in a net increase of available cash by $30 million.

The amended terms include

• Extension of the loan to February 2020 from November 2017;

• A $100 million increase in the amount of the revolving loan facility; and

• Improved financial and other restrictive covenants.

The new debt agreement increased CSG’s liquidity and capital resources position by $130 million, the company said.

The 2015 credit agreement replaced the credit agreement inked in November 2012.

The new agreement includes mandatory repayments of the term loan, payable quarterly, for the first, second, third, fourth and fifth years, with the remaining principal balance due at maturity.

The agreement has no prepayment penalties and requires mandatory repayments for asset sales or casualty proceeds and proceeds of debt or preferred stock issues.

CSG Systems is an Englewood, Colo.-based provider of software and services-based business support solutions that help clients generate revenue and maximize customer relationships.

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