BISYS Sets Up Credit Facility To Cover Possible Delay In Sale Of Information Services Businesses

BISYS has set up a new borrowing facility. It consists of a revolving credit facility of up to $100 million which is immediately available and may be used for working capital and other corporate purposes, plus a term loan in

By None

BISYS has set up a new borrowing facility. It consists of a revolving credit facility of up to $100 million which is immediately available and may be used for working capital and other corporate purposes, plus a term loan in an aggregate amount of up to $300 million which would be available, if necessary, to repay the company’s currently outstanding $300 million of 4% convertible notes due March 15, 2006.

SunTrust Bank serves as the Administrative Agent for the new facility. The company’s previous $150 million revolving credit facility has been terminated. No borrowings were outstanding under the prior agreement at the time of termination.

The new facility, which has a term of one year, provides the company with immediate borrowing availability and simplifies its financial covenants and reporting obligations. BISYS says the current interest rates payable under the revolving portion of the new facility are comparable to those in its prior credit facility. However, should the company choose to fund the term loan portion of the facility, its interest expense may increase, as the borrowing costs associated with the term loan are higher than those associated with the Company’s currently outstanding 4% convertible notes.

As previously announced, the company expects to close the sale of the Information Services business prior to 28 February 2006. BISYS intends to use a portion of the proceeds from this sale to retire its convertible notes, but if the closing of the sale is delayed, it may choose to repay the maturing notes with the term loan portion of the new facility.

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