May 7, 2013
/PRNewswire/ -- Information Services Group, Inc. (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company today announced it has executed a new
, five-year credit agreement with more favorable terms and extended maturity to mid-2018.
"Our strengthening financial performance, driven by our evolving advisory services and recurring revenue business model, has allowed us to take advantage of the favorable environment in the capital markets to lower our mandatory principal payments and borrowing costs over the life of the credit facility while enhancing our operational flexibility," stated
Michael P. Connors
, Chairman and CEO of ISG. "Coupled with a reduction in our overall debt by nearly
since mid-March of 2012, the enhanced terms under the new credit facility will result in lower principal and interest payments and provide for an extension of our debt maturity to mid-2018. This will benefit our cash flow and earnings per share in the coming years and provide us with additional flexibility with respect to growth opportunities and shareholder-enhancing initiatives."
The new senior secured credit facility, arranged by Bank of America, is comprised of a
term loan facility and a
revolving credit facility. Interest rate spreads will range between 2.0%-3.5% over LIBOR in the new credit facility depending on the Company's leverage ratio compared to a fixed interest rate spread of 3.5% over LIBOR under its previous credit facility. ISG borrowed
at closing to refinance its existing debt.
ISG also retired
or 18% of Convertible Notes outstanding at a 45% discount (
to pay off
). As such the Company will book a non-operating gain of approximately
in the second quarter. This gain will be offset by an approximately
noncash charge associated with the early retirement of the existing term loan.
Detailed information regarding the credit agreement is included in the company's Form 8-K filed today with the SEC.