ARC upsizes revolver to $80 million, resizes term loan at $60 million

By Susanna Moon

Chicago, July 18 – ARC Document Solutions, Inc.’s wholly owned subsidiary, ARC Document Solutions, LLC, increased the maximum amount of revolving loans to $80 million from $30 million.

The credit agreement also resizes the outstanding principal amount of the term loan at $60 million.

ARC amended its credit agreement last Friday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

As amended, the principal of the resized term loan balance will amortize at an annual rate of 7.5% during the first and second years after the amended date and at an annual rate of 10% during the third, fourth and fifth years, with any remaining balance payable at maturity.

The amendment also extended the maturity for the revolving loans and the term loans until July 14, 2022.

Interest on the loans was reduced by 25 basis points to Libor plus a margin ranging from 125 bps to 225 bps, based on leverage.

The rate on the effective date of the amendment is Libor plus 175 bps.

The commitment fee for the revolver varies from 15 bps to 35 bps and is 25 bps on the effective date.

The facility also modified the total leverage ratio required under the credit agreement to 3.25 times from 3 times.

ARC Document Solutions, Inc. is a Walnut Creek, Calif., document solutions provider for the architectural, engineering and construction industry.

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