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CheckFree gets news $185 million revolver
By Sara Rosenberg
New York, Aug. 25 - CheckFree Corp. closed on a new $185 million three-year senior secured revolving credit facility, according to a company news release. SunTrust Capital Markets Inc. and Banc of America Securities LLC acted as joint lead arrangers, SunTrust Capital Markets acted as sole bookrunner, SunTrust Bank is the administrative agent, Bank of America is the syndication agent, and Keybank, US Bank and BNP Paribas are documentation agents.
The interest rate and the commitment fee are based on leverage. If the leverage ratio is less than 0.5-to-1.00 then the rate is Libor plus 100 basis points with a 20 basis points commitment fee. If the leverage ratio is greater than or equal to 0.5-to-1.00 but less than 1.00-to-1.00 then the rate is Libor plus 125 basis points with a 25 basis points commitment fee. If the leverage ratio is greater than or equal to 1.00-to-1.00 but less than 1.50-to-1.00 then the rate is Libor plus 150 basis points with a 30 basis points commitment fee. And, if the leverage ratio is greater than or equal to 1.50-to-1.00 then the rate is Libor plus 200 basis points with a 35 basis points commitment fee, according to an 8-K filed with the Securities and Exchange Commission Wednesday.
Financial covenants include a net leverage ratio of no more than 1.75-to-1.00 for each fiscal quarter, a fixed charge coverage ratio of no less than 2.50-to-1:00 for each fiscal quarter and a minimum consolidated EBITDA requirement of $100 million for each fiscal quarter.
Borrowings can be used for general corporate purposes including working capital, acquisitions and letter-of-credit needs.
CheckFree is a Norcross, Ga., provider of financial electronic commerce services and products.
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