Global Imaging Systems will save up to $1 million a year after repricing its $208 million term loan from LIBOR plus 2% to LIBOR plus 1 1/2%. A favorable bank market combined with improved performance led the company to negotiate the amendment.
Last February, Standard & Poor's affirmed Global Imaging's BB rating and raised the outlook from stable to positive due to the company's improved performance, said Craig Storts, Global Imaging's treasurer. In addition, "There is a lot of money chasing very few bank loans. It's a supply and demand issue."
Wachovia Securities leads the deal, which also includes a $70 million revolver. Pricing on the revolver was unchanged at LIBOR plus 2%. The credit was put in place last May when Global Imaging bought Imagine Technology Group for approximately $104 million. The company used over $40 million cash on hand and expanded the term-loan portion of its bank deal by $70 million. At the time pricing was also lowered, while the revolver was cut by $20 million.
Wachovia has been Tampa-based Global Imaging's lead lender and financial advisor since the company went public in 1998. Doug Sleeper is Global Imaging's lead banker at Wachovia. Jim Zilisch and Jason Miller were also instrumental in the transaction, Storts underscored. Global Imaging also has $57.5 million of 4% convertible notes due 2008.