Global Imaging to launch $250 million loan on May 21

By Sara Rosenberg

New York, May 13 - Global Imaging Systems Inc. is scheduled to hold a bank meeting on May 21 for a $250 million senior secured credit facility, according to a Wachovia Securities report. Wachovia is the lead bank on the deal.

The facility consists of a $100 million five-year revolver with an interest rate of Libor plus 275 basis points and a $150 million six-year term loan with an interest rate of Libor plus 350 basis points.

Proceeds will be used to refinance the existing senior credit facility.

"Our senior credit facility refinancing is part of a larger debt refinancing. We also plan to repay approximately $50 million of the amount outstanding under our senior credit facility. Assuming these transactions are completed as planned, we intend to use the proceeds to redeem our currently outstanding 10 ¾% notes. The purpose of this refinancing is to reduce our interest payments and improve our capitalization," said Tom Johnson, president and chief executive officer, in a news release.

Global Imaging is a Tampa, Fla. provider of office technology solutions.

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