Global Imaging lowers Libor spread on $140 million term loan to 250 basis points

By Sara Rosenberg

New York, Dec. 10 - Global Imaging Systems Inc. reduced the interest rate on its $140 million term loan by 50 basis points to Libor plus 250 basis points. Furthermore, the interest rate can be further reduced to Libor plus 225 basis points if the rating agencies upgrade the company's debt rating.

Wachovia is the lead bank on the deal.

"With the current amount outstanding on our $140 million term loan, our annual interest expense net of financing fee amortization will be reduced by approximately $600,000," said Tom Johnson, chairman and chief executive officer, in a company news release.

The lower interest rate applies only to the company's term loan. The currently unused $90 million five-year revolver that carries an interest rate of Libor plus 275 basis points was left unchanged.

"We are extremely pleased with the progress we have made this year in paying down debt, in our comprehensive refinancing that was successfully completed in May and the recognition of our consistent profitability and strong cash flow by our lenders and the debt rating agencies," Johnson said in the release.

"In May we reduced the average interest rate on our debt from more than nine percent to approximately four percent. Now we have achieved a further interest rate reduction on the largest piece of our debt."

"Money available under the credit facility combined with our cash flow should be more than adequate to fund our acquisition program for the foreseeable future," he added.

Global Imaging is a Tampa, Fla., provider of office technology solutions to middle-market businesses.

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