WALNUT CREEK, Calif.,
July 17, 2017 /PRNewswire/
-- ARC Document Solutions, Inc. (NYSE:ARC) announced today
that it entered into an amendment to its credit facility which
reduced the Term A loan to $60
million and increased the revolving line of credit to
$80 million. The balance of the
outstanding debt under the credit facility remains unchanged at
$110 million.
"Our focus on generating cash and reducing our debt has allowed
us to renegotiate our current agreement to more favorable terms,"
said Suri Suriyakumar, Chairman, CEO
of ARC. "The amended and restated agreement not only improves our
capital structure, but more importantly, it allows us significant
flexibility in terms of investing in and operating the business
during its transition."
The amendment to the credit facility reduced the per annum
floating interest rate that is adjusted quarterly based on the
Company's leverage ratio by 25 basis points across the board. Based
on ARC's current leverage ratio of less than 2.5 times, the
Company's interest rate, effective July 14,
2017, will be LIBOR plus 175 basis points. Annual
amortization charges under the amended facility are projected to
drop from $17.5 million to $4.5
million, a reduction of $13
million, and the agreement features fewer restrictions on
ARC's uses of excess cash.
The credit facility was reallocated among its lenders and has a
restated term of five years that matures in July 2022.
Wells Fargo Securities was the Lead Arranger on the
transaction.
About ARC Document Solutions (NYSE: ARC)
ARC Document Solutions distributes documents and information to
facilitate communication for design, engineering and construction
professionals, real estate managers and developers, facilities
owners, and a variety of similar disciplines. The Company provides
cloud and mobile solutions, professional services, and hardware to
help its customers around the world reduce costs and increase
efficiency, improve information access and control, and communicate
faster, easier, and better. Follow ARC at www.e-arc.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current opinions, estimates and assumptions of management
regarding future events and the future financial performance of the
Company. All statements other than statements of historical fact,
including, but not limited to, any projections regarding the
financial performance of the Company, could be deemed
forward-looking statements. We caution you that such statements are
only predictions and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
contained in the forward-looking statements. In addition to matters
affecting the construction, managed print services, document
management or reprographics industries, or the economy generally,
factors that could cause actual results to differ from expectations
stated in forward-looking statements include, among others, the
factors described in the caption entitled "Risk Factors" in Item 1A
in ARC Document Solution's Annual Report on Form 10-K for the
fiscal year ended December 31, 2016,
Quarterly Reports on Form 10-Q, and other periodic filings and
prospectuses. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
law.
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SOURCE ARC Document Solutions