Ebix, Inc. (NASDAQ: “Ebix”), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
financial, healthcare, and e-learning industries, announced that it
has signed an amendment (“Amendment No. 13”) to its existing credit
agreement, extending the maturity date to May 23, 2023.
Amendment No. 13 provides for, among other
things, an extension of the maturity date for both the revolving
line of credit (the “Revolver”) and the term loan (the “Term
Loan”), each as existing under the Credit Agreement. It was
conditioned, among other things, upon the Company (i) making a
$5,000,000 prepayment of the Revolver and (ii) paying a customary
consent fee.
Amendment No. 13 modifies certain repayment
provisions in the Credit Agreement to provide that (i) each
repayment of the Revolver shall be accompanied by a corresponding
reduction of the aggregate revolving commitments, with amounts
repaid on the Revolver not being available to be reborrowed and
(ii) the Company shall be required to make an amortization payment
on the Term Loan in an amount of $5,000,000 for the fiscal quarter
ending March 31, 2023.
Amendment No. 13 will result in an approximately
1.00% per annum interest rate increase for the interest period
beginning February 21, 2023 compared to the interest period ended
immediately prior thereto.
“At Ebix, we run a Company with strong operating
metrics and cash flows. We are aware that our operating metrics are
the envy of the industry and the only thing impacting it adversely
is the cost of debt. We are also aware that it is in the best
interest of our shareholders and the Company, to ideally have a
debt-free company or a company with minimal debt,” Ebix, Inc.
President and CEO, Robin Raina said. “We are focused on maximizing
shareholder value. All our decisions related to any refinancing or
debt reduction efforts are driven by that core principle and this
extension is a step forward in that direction.”
Robin added, “We are exploring many strategic
steps including an expeditious EbixCash IPO (once DRHP is approved)
or/and certain other strategic initiatives, in consultation with
our Indian and US investment bankers. We are focused on taking the
most investor friendly path while reducing or minimizing our debt.
This extension allows us the time to take various steps, towards
achieving that end goal.”
About Ebix, Inc.With
approximately 200 offices across 6 continents, Ebix, Inc., (NASDAQ:
EBIX) endeavors to provide on-demand software and e-commerce
services to the insurance, financial services, travel, healthcare
and e-learning industries. In the Insurance sector, Ebix’s main
focus is to develop and deploy a wide variety of insurance and
reinsurance exchanges on an on-demand basis, while also, providing
Software-as-a-Service ("SaaS") enterprise solutions in the area of
CRM, front-end & back-end systems, outsourced administration
and risk compliance services, around the world.
With a "Phygital” strategy that combines over
650,000 physical distribution outlets in many Southeast Asian
Nations (“ASEAN”) countries, to an Omni-channel online digital
platform, the Company’s EbixCash Financial exchange portfolio of
software and services encompasses domestic and international money
remittance, foreign exchange (Forex), travel, pre-paid gift cards,
utility payments, lending and wealth management across 75+
countries including India. EbixCash’s Forex operations is a leader
in India’s airport Forex business, with operations in approximately
20 international airports, including Delhi, Mumbai, Hyderabad,
Chennai and Kolkata, combined conducting over $4.8 billion in gross
transaction value per year (pre-COVID-19). EbixCash’s inward
remittance business in India processed approximately $5 billion in
gross annual remittance volume (pre-COVID-19) and is the clear
market leader. EbixCash, through its travel portfolio of Via and
Mercury, is also one of Southeast Asia’s leading travel exchanges
with over 517,000 agents and approximately 17,900 registered
corporate clients, combined having processed an estimated $2.5
billion in gross merchandise value per year (pre-COVID-19).
EbixCash's financial technologies business offers software
solutions at the enterprise level for banks, asset and wealth
management companies and trust companies within India, Southeast
Asia, the Middle East and Africa. The EbixCash's e-learning
solutions are provided to schools across the breadth of India via
high quality 2-D and 3-D animation and multimedia learning.
EbixCash's business process outsourcing services provide
information technology and call center services to a variety of
industries.
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific technology
professionals to provide products, support and consultancy to
thousands of customers on six continents. For more information,
visit the Company’s website at www.ebix.com
CONTACT:
Satish Saprusatish.sapru@Ebix.com or +91 99990 13426
Darren JosephIR@ebix.com or +1 678 281 2027
David Collins or Chris Eddy, Catalyst Globalebix@catalyst-ir.com
or + 1 212-924-9800
SAFE HARBOR REGARDING FORWARD-LOOKING
STATEMENTSAs used herein, the terms “Ebix,” “the Company,” “we,”
“our,” and “us” refer to Ebix, Inc., a Delaware corporation, and
its consolidated subsidiaries as a combined entity, except where it
is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release
contains forward-looking statements and information within the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. This
information includes assumptions made by, and information currently
available to management, including statements regarding future
economic performance and financial condition, liquidity and capital
resources, acceptance of the Company’s products by the market, and
management’s plans and objectives. In addition, certain statements
included in this and our future filings with the Securities and
Exchange Commission (“SEC”), in press releases, and in oral and
written statements made by us or with our approval, which are not
statements of historical fact, are forward-looking statements.
Words such as “may,” “could,” “should,” “would,” “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “seeks,” “plan,”
“project,” “continue,” “predict,” “will,” and other words or
expressions of similar meaning are intended by the Company to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are found at various places throughout
this report and in the documents incorporated herein by reference.
These statements are based on our current expectations about future
events or results and information that is currently available to
us, involve assumptions, risks, and uncertainties, and speak only
as of the date on which such statements are made.
Our actual results may differ materially from
those expressed or implied in these forward-looking statements.
Factors that may cause such a difference, include, but are not
limited to those discussed in our Annual Report on Form 10-K for
the year ended December 31, 2021 and subsequent reports filed with
the SEC, as well as: the ongoing effects of the Covid-19 global
pandemic, the willingness of independent insurance agencies to
outsource their computer and other processing needs to third
parties; pricing and other competitive pressures and the Company’s
ability to gain or maintain share of sales as a result of actions
by competitors and others; changes in estimates in critical
accounting judgments; changes in or failure to comply with laws and
regulations, including accounting standards, taxation requirements
(including tax rate changes, new tax laws and revised tax
interpretations) in domestic or foreign jurisdictions; exchange
rate fluctuations and other risks associated with investments and
operations in foreign countries (particularly in India, Australia
and Asia, Latin America and Europe wherein we have significant
and/or growing operations); fluctuations in the equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; ability to secure additional financing to
support capital requirements; credit facility provisions that could
materially restrict our business; costs and effects of litigation,
investigations or similar matters that could affect our business,
operating results and financial condition; and international
conflict, including terrorist acts and wars.
Except as expressly required by the federal
securities laws, the Company undertakes no obligation to update any
such factors, or to publicly announce the results of, or changes to
any of the forward-looking statements contained herein to reflect
future events, developments, changed circumstances, or for any
other reason. Readers should carefully review the disclosures and
the risk factors described in the documents we file from time to
time with the SEC, including future reports on Forms 10-Q and 8-K,
and any amendments thereto.
You may obtain our SEC filings at our website,
www.ebix.com under the “Investor Information” section, or over the
Internet at the SEC’s web site, www.sec.gov
Disclaimer:EbixCash Limited is proposing,
subject to receipt of requisite approvals, market conditions and
other considerations, to make an initial public offer of its equity
shares and has filed a draft red herring prospectus (“DRHP”) with
the Securities and Exchange Board of India. The DRHP is available
on the website of the SEBI at www.sebi.gov.in as well as on the
websites of the book running lead managers, Motilal Oswal
Investment Advisors Limited at www.motilaloswalgroup.com, Equirus
Capital Private Limited at www.equirus.com, ICICI Securities
Limited at www.icicisecurities.com, SBI Capital Markets Limited at
www.sbicaps.com and YES Securities (India) Limited at
www.yesinvest.in, respectively, and the websites of the stock
exchange(s) at www.bseindia.com and www.nseindia.com, respectively.
Investors should note that investment in equity shares involves a
high degree of risk and for details relating to such risk, see
"Risk Factors" of the RHP, when available. Potential investors
should not rely on the DRHP for any investment decision.
Ebix (NASDAQ:EBIX)
Historical Stock Chart
From Feb 2024 to Mar 2024
Ebix (NASDAQ:EBIX)
Historical Stock Chart
From Mar 2023 to Mar 2024