NEW YORK, June 20, 2019 /PRNewswire/ -- TransPerfect,
the world's largest provider of language and technology solutions
for global business, today announced that it has refinanced its
existing credit facility. A new $450
million credit facility (consisting of a $400 million term loan and a $50 million revolving credit line) will replace
and terminate a previous $445 million
credit facility used during the consolidation of the company's
ownership in 2018. The new facility matures on June 7, 2024, and bears an initial annual
interest rate of LIBOR plus 3.00%.
TransPerfect President and CEO Phil
Shawe called the refinancing a significant event that will
enhance cash flow for operations and further bolster the company's
already impressive growth. "Since the consolidation of ownership
last year, our existing management team has worked relentlessly to
decrease the company's leverage by continuing to drive both
top-line revenue growth and bottom-line profits," said Shawe. "Our
ability to refinance debt on better terms is a testament to the
performance of our 5,000 employees worldwide, who continue to
distinguish themselves with professionalism, hard work, dedication,
and innovation."
TransPerfect previously announced that 2018 billed revenue
increased 15% to $705 million. Our
strong revenue growth, coupled with significant operating
efficiencies, resulted in EBITDA increasing approximately 22% from
2017 to 2018.
The new facility was provided through a banking syndicate
arranged by Bank of America, N.A., JPMorgan Chase Bank, N.A., and
Citibank, N.A., with Bank of America acting as the sole
administrative agent. Baker Botts LLP acted as transaction counsel,
and CDX Advisors acted as financial advisor to TransPerfect.
"We would like to thank our banking partners for their vote of
confidence in TransPerfect. The strong credit market and high
demand for TransPerfect's term loan has enabled us to reduce our
interest expense by approximately $15
million per year and has enhanced our ability to re-invest
in the business," added Shawe.
"TransPerfect is the leading provider of translation services
and technology, and Bank of America Merrill Lynch is pleased to
have worked with the company on this significant financing," said
Stacey Hadash, Market Executive,
Global Commercial Banking, Bank of America Merrill Lynch. Ms.
Hadash further added that "along with our syndicate partners, we
look forward to working with TransPerfect and playing a role in the
company's growth."
About TransPerfect
TransPerfect is the world's
largest provider of language and technology solutions for
global business. From offices in over 90 cities on six continents,
TransPerfect offers a full range of services in 170+ languages to
clients worldwide. More than 5,000 global organizations employ
TransPerfect's GlobalLink® Product Suite to simplify
management of multilingual content. With an unparalleled commitment
to quality and client service, TransPerfect is fully ISO 9001 and
ISO 17100 certified. TransPerfect has global headquarters in
New York, with regional
headquarters in London and
Hong Kong. For more information,
please visit our website at www.transperfect.com.
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SOURCE TransPerfect