Geac obtains new $150 million revolving credit facility from banking syndicate led by Bank of America
12 August 2005 - 3:32AM
PR Newswire (US)
MARKHAM, ON and SOUTHBOROUGH, MA, Aug. 11 /PRNewswire-FirstCall/ --
Geac Computer Corporation Limited (TSX: GAC and NASDAQ: GEAC), a
global enterprise software company that addresses the needs of
CFOs, today announced a new five- year, $150 million revolving
credit facility in favor of itself and certain of its subsidiaries
with a banking syndicate led by Bank of America, N.A. The new
facility replaces the Company's existing $50 million, fully-secured
credit facility with Wells Fargo Foothill due to expire on
September 9, 2006. The new facility is secured only by the stock of
certain of the Company's material subsidiaries. "The terms of this
credit facility reflect our progress in strengthening Geac's
balance sheet and the consistency of our profitable operating
results," said Donna de Winter, Chief Financial Officer of Geac.
"The new facility provides us with more favorable pricing, more
flexible terms and a higher borrowing capacity that will put us at
a competitive advantage in executing our stated acquisition
strategy, which is critical as we continue to look for
opportunities to grow our revenue, increase our customer base and
expand our products." Under the new five-year credit facility, the
LIBOR based rate ranges between LIBOR plus 125 and 175 basis
points, and the prime based rate ranges between prime plus 25 and
75 basis points. The initial syndicate consists of Bank of America,
N.A., as Administrative Agent, Citibank, N.A., as Syndication
Agent, and Wachovia Bank, as Documentation Agent, with other
lenders including JP Morgan Chase, Key Bank, Canadian Imperial Bank
of Commerce, Malayan Banking Berhad and Standard Federal Bank. The
transaction was oversubscribed. All dollar figures used in this
Press Release are United States dollars. About Geac Geac (TSX: GAC,
NASDAQ: GEAC) is a leading global provider of software and services
for businesses and governmental bodies providing customers with
financial and operational technology solutions to optimize their
financial value chain. Further information is available at
http://www.geac.com/ or through email at . Geac trades on the
Toronto Stock Exchange under the symbol "GAC" and on the NASDAQ
National Market under the symbol "GEAC" and had 86,377,012 common
shares issued and outstanding at April 30, 2005. This press release
contains forward-looking statements of Geac's intentions, beliefs,
expectations and predictions for the future. These forward-looking
statements often include use of the future tense with words such as
"will," "may," "intends," "anticipates," "expects" and similar
conditional or forward-looking words and phrases. These
forward-looking statements are neither promises nor guarantees.
They are only predictions that are subject to risks and
uncertainties, and they may differ materially from actual future
events or results. Geac disclaims any obligation to update any such
forward-looking statements after the date of this release. Among
the risks and uncertainties that could cause a material difference
between these forward-looking statements and actual events include,
among other things: our ability to increase revenues from license
sales, cross-sell into our existing customer base and reduce
customer attrition; whether we can identify and acquire synergistic
businesses and, if so, whether we can successfully integrate them
into our existing operations; whether we are able to deliver
products and services within required time frames and budgets to
meet increasingly competitive customer demands and performance
guarantees; risks inherent in fluctuating international currency
exchange rates in light of our global operations and the
unpredictable effect of geopolitical world and local events;
whether we are successful in our continued efforts to manage
expenses effectively and maintain profitability; our ability to
achieve revenue from products and services that are under
development; the uncertain effect of the competitive environment in
which we operate and resulting pricing pressures; and whether the
anticipated effects and results of our new product offerings and
successful product implementation will be realized. These and other
potential risks and uncertainties that relate to Geac's business
and operations are summarized in more detail from time to time in
our filings with the United States Securities and Exchange
Commission and with the Canadian Securities Administrators,
including Geac's most recent quarterly reports available through
the website maintained by the SEC at http://www.sec.gov/ and
through the website maintained by the Canadian Securities
Administrators and the Canadian Depository for Securities Limited
at http://www.sedar.com/. Geac is a registered trademark of Geac
Computer Corporation Limited. All other marks are trademarks of
their respective owners. DATASOURCE: Geac Computer Corporation
Limited CONTACT: Financial Contact: Donna de Winter, Chief
Financial Officer, Geac, (905) 475-0525 ext. 3204; Investor and
Media Contact: Alys Scott, Vice President, Corporate
Communications, Geac, (508) 871-5854
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