Leading technology and digital engineering company Everforth, Inc. today announced it has upsized and refinanced its existing $500 million Revolving Credit Facility. The company has replaced it with a new, five-year revolving credit facility of $600 million. Furthermore, the refinancing pushes out the maturity date on the facility to 2031 from 2028.
The increased revolving credit facility demonstrates Everforth’s ongoing commitment to a strong capital structure. The transaction also provides additional liquidity and flexibility to pursue strategic business opportunities. The company also expects the new facility will enhance its ability to support future investments and operational growth.
The refinancing adds to the evidence of confidence in Everforth’s financial performance and long-term business strategy. “With continued market developments, access to additional capital positions the company to respond efficiently to future opportunities. The new facility is therefore an important part of Everforth’s overall financial management strategy.
“With enhanced financial flexibility and a disciplined approach to capital allocation, we are well positioned to support future growth,” Ted Hanson, Chief Executive Officer of Everforth, Inc.
“The successful refinancing and upsizing of our credit facility reflects the strength of our balance sheet, the durability of our free cash flow generation, and confidence in Everforth’s long-term growth strategy,” said Everforth’s Chief Executive Officer, Ted Hanson. “With enhanced financial flexibility and a disciplined approach to capital allocation, we are well positioned to support future growth while continuing to deploy capital in the best interests of our stockholders.”
New Credit Facility Extends Maturity Through 2031
Under the new agreement, borrowings will be priced off the Secured Overnight Financing Rate (SOFR). Pricing will also carry a margin somewhere between 175 and 275 basis points. The applicable rate will be based upon Everforth’s secured leverage borrowing levels.
The deal also has a commitment fee of 30-45bps. This fee is only levied on the unused portion of the revolving credit facility. The new financing structure is leverage neutral and the company will be able to maintain its current leverage profile while increasing available capital.
Everforth intends to use the proceeds of the new facility to repay its existing $500 million Revolving Credit Facility and $100 million Term Loan A. The company will therefore consolidate its financing into one large revolving credit agreement with a longer maturity.
Big financial institutions spearhead refinancing deal
The refinancing was supported by several leading financial institutions. The financing process was led by joint arrangers Wells Fargo Securities, LLC, Truist Securities, Inc., BofA Securities, Inc. and JPMorgan Chase Bank, N.A.
The successful closing of the deal further underscores lenders’ confidence in Everforth’s financial strength, stable cash flow generation and long-term growth outlook. In addition, the refinancing gives the company additional resources to support future strategic priorities while maintaining prudent financial discipline.
The expanded revolving credit facility also allows Everforth to adjust with more agility to changing market conditions. This enables the company to move into the next phase of its growth with improved liquidity, a better capacity for financing and a stronger capital base.
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News Source: Businesswire.com
