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NEW YORK, June 20, 2019 (GLOBE NEWSWIRE) -- TransPerfect, the world's largest provider of language and technology solutions for global business, today announced that it has refinanced its existing credit facility. A new $450 million credit facility (consisting of a $400 million term loan and a $50 million revolving credit line) will replace and terminate a previous $445 million credit facility used during the consolidation of the company’s ownership in 2018. The new facility matures on June 7, 2024, and bears an initial annual interest rate of LIBOR plus 3.00%.
TransPerfect President and CEO Phil Shawe called the refinancing a significant event that will enhance cash flow for operations and further bolster the company’s already impressive growth. “Since the consolidation of ownership last year, our existing management team has worked relentlessly to decrease the company’s leverage by continuing to drive both top-line revenue growth and bottom-line profits,” said Shawe. “Our ability to refinance debt on better terms is a testament to the performance of our 5,000 employees worldwide, who continue to distinguish themselves with professionalism, hard work, dedication, and innovation.”
TransPerfect previously announced that 2018 billed revenue increased 15% to $705 million. Our strong revenue growth, coupled with significant operating efficiencies, resulted in EBITDA increasing approximately 22% from 2017 to 2018.
The new facility was provided through a banking syndicate arranged by Bank of America, N.A., JPMorgan Chase Bank, N.A., and Citibank, N.A., with Bank of America acting as the sole administrative agent. Baker Botts LLP acted as transaction counsel, and CDX Advisors acted as financial advisor to TransPerfect.
“We would like to thank our banking partners for their vote of confidence in TransPerfect. The strong credit market and high demand for TransPerfect’s term loan has enabled us to reduce our interest expense by approximately $15 million per year and has enhanced our ability to re-invest in the business,” added Shawe.
“TransPerfect is the leading provider of translation services and technology, and Bank of America Merrill Lynch is pleased to have worked with the company on this significant financing,” said Stacey Hadash, Market Executive, Global Commercial Banking, Bank of America Merrill Lynch. Ms. Hadash further added that “along with our syndicate partners, we look forward to working with TransPerfect and playing a role in the company’s growth.”
TransPerfect is the world’s largest provider of language and technology solutions for global business. From offices in over 90 cities on six continents, TransPerfect offers a full range of services in 170+ languages to clients worldwide. More than 5,000 global organizations employ TransPerfect’s GlobalLink® Product Suite to simplify management of multilingual content. With an unparalleled commitment to quality and client service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect has global headquarters in New York, with regional headquarters in London and Hong Kong. For more information, please visit our website at www.transperfect.com.
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