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Syntel gets $90 million revolver, $60 million term loan, both due 2016
By Angela McDaniels
Tacoma, Wash., May 23 - Syntel, Inc. entered into a $90 million revolving credit facility and a $60 million term loan with Bank of America, NA on Thursday, according to an 8-K filing with the Securities and Exchange Commission.
Both mature on May 23, 2016.
The interest rate is Libor plus 125 basis points for the revolver and Libor plus 150 bps for the term loan. The commitment fee for the revolver is 12.5 bps.
The term loan requires amortization payments of $1.5 million in each of the first four quarters, $1,875,000 in each of the fifth through eighth quarters and $2.25 million in each of the ninth through 11th quarters.
Under the financial covenants, the company must maintain a fixed-charge coverage ratio of at least 1.25 to 1.0 and a consolidated domestic leverage ratio of no more than 8.0 to 1.0. The maximum leverage ratio steps down to 6.5 to 1.0 in 2014, to 5.75 to 1.0 in 2015 and to 5.0 to 1.0 in 2016.
The credit agreement is guaranteed by two of the company's domestic subsidiaries, SkillBay LLC and Syntel Consulting Inc. The company and the guarantors entered into a related security and pledge agreement granting a security interest in the assets of the company and the guarantors including a pledge of 65% of the equity interests in Syntel Ltd.
The company fully paid and terminated the note modification agreement dated Dec. 7, 2012 with JPMorgan Chase Bank, NA. The related continuing security agreement dated Dec. 7, 2012 with JPMorgan and the credit agreement dated Aug. 3, 2009 with JPMorgan were also terminated.
Syntel is based in Troy, Mich., and provides information technology and knowledge process outsourcing.
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