This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Information Services Group Announces New Credit Agreement

STAMFORD, Conn., 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 $70 million, 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 $10 million 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 $45 million term loan facility and a $25 million 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 $55 million at closing to refinance its existing debt.

ISG also retired $1.144 million or 18% of Convertible Notes outstanding at a 45% discount ( $650K to pay off $1.144 million). As such the Company will book a non-operating gain of approximately $0.5 million in the second quarter.  This gain will be offset by an approximately $0.6 million 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.01 -2.70%
FB $104.02 -5.90%
GOOG $684.00 -3.40%
TSLA $163.01 -7.00%
YHOO $27.97 -4.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs