ExlService Holdings Enters New $1 Billion Credit Facility to Refinance Debt

ExlService Holdings, Inc. has entered into a new credit agreement totaling $1 billion, consisting of a $600 million revolving credit facility and a $400 million term loan. The new facilities, led by PNC Bank as administrative agent, mature on August 18, 2031, and were used to refinance and terminate the company's previous credit agreement.

Key Details

• New Facilities: The agreement provides for a $600 million revolving credit facility and a $400 million term loan facility, both maturing on August 18, 2031.
• Refinancing: Proceeds were used to repay approximately $532.7 million outstanding under and terminate the company's prior credit agreement with Citibank, which consisted of a $500 million revolver and a $100 million term loan.
• Terms & Covenants: Borrowings bear interest based on SOFR plus a margin tied to the company's leverage ratio. The agreement includes financial covenants requiring a minimum Interest Coverage Ratio of 3.00x and a maximum Total Net Leverage Ratio of 3.50x.
• Use of Proceeds: Beyond refinancing, the facilities will be used for working capital, general corporate purposes, permitted acquisitions, and share buybacks.