HARTFORD, Conn., Sept. 10, 2012 /PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates a multi-manager asset management business, today announced it has enhanced its long-term capital position by amending its existing credit agreement to extend the term, increase the capacity and provide for more favorable terms.
The amended facility extends the term of the current $30.0 million credit agreement, which was signed in 2009 and amended in 2010, by five years from closing, and sets a maximum available credit limit of $75.0 million for the full term. In addition, the facility provides for a $50.0 million increase provision conditioned on approval by the lending group. The company has $15.0 million outstanding on the facility and has no specific intention to increase the size of its outstanding debt at this time.
The agreement also provides financing at a lower variable interest rate that is tied to standard benchmark rates, and revises certain debt covenants to provide additional operating flexibility.The lending group is led by BNY Mellon as administrative agent and PNC Bank, National Association as syndication agent. Other lenders participating in the syndicate are Citibank, N.A. and Royal Bank of Canada. "Our consistent growth, increased operating results and free cash flow generation have enabled us to lower our cost of capital, increase our borrowing capacity, and improve our financial flexibility through a five-year term with more favorable operating provisions," said Michael A. Angerthal, executive vice president and chief financial officer. "We appreciate the commitment that our existing lending partners and the new members of the syndicate are making to the future growth of Virtus." About Virtus Investment PartnersVirtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Its affiliated managers include Duff & Phelps Investment Management Co., Euclid Advisors LLC, Kayne Anderson Rudnick Investment Management, LLC, Newfleet Asset Management, LLC, and Zweig Advisers LLC. Additional information can be found at www.virtus.com. Forward-Looking Information This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "estimate," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions and projections about our company, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, cash inflows and outflows, operating cash flows, and future credit facilities, for all forward periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.