SS&C repays debt ‘in a hurry,’ going to 3.7x from 5.4x in two years

By Devika Patel

Knoxville, Tenn., June 14 – SS&C Technologies Holdings Inc. has brought its net debt to EBITDA ratio down to 3.7x from 5.4x two years ago, which the company’s top executive said is consistent with the company’s strategy to repay debt quickly.

“We pay down debt in a hurry,” chairman and chief executive officer Bill Stone said at the William Blair 2017 Growth Stock Conference in Chicago on Wednesday.

“We’ve done it three times, and we were at 5.4x when we bought Advent, we’re [now] down to 3.7x.

“That’s close to two turns in about two years,” he said.

The company is generating “a lot” of cash, which will continue, Stone said.

“We continue to generate a lot of cash, which gives us a lot of flexibility, and I think that’s going to continue,” he said.

Stone said the company is not averse to taking on debt when it conducts acquisitions, in order to keep from diluting its shares.

“We like to use debt when we do acquisitions so that we don’t dilute our shareholders and, so far, that’s worked pretty well,” he said.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.