IRVING, Texas, Nov. 29, 2017 (GLOBE NEWSWIRE) -- Blucora, Inc. (NASDAQ:BCOR), a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals, today announced that it has successfully completed an amendment to its credit agreement to reduce the interest rate on its $350 million senior secured term loan facility.
The leverage-neutral transaction lowered the interest rate margin by 75 basis points to LIBOR plus 300 basis points from LIBOR plus 375 basis points. The LIBOR floor remains at 1.00%. The reduction in the interest rate, without considering any prepayments of principal, is expected to generate annual cash interest savings of approximately $2.6 million.
"We’re pleased to continue our efforts of the past two years to significantly reduce debt and associated interest expense, while strengthening our balance sheet,” said John Clendening, President and Chief Executive Officer. “This 75 basis point reduction in interest rate follows a 225 basis point reduction in May and reflects the company’s strong performance.”
There was no change to the maturity of the debt as a result of this repricing amendment, and the term loan facility remains at a B1 / BB- rating. Credit Suisse acted as sole lead arranger on the transaction.
Additional information regarding the terms of the amendment can be found on the Company’s Form 8-K filed with the Securities and Exchange Commission today.
Blucora, Inc. (NASDAQ:BCOR) is a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals. Our products and services in tax preparation and wealth management, through TaxAct and HD Vest, help consumers manage their financial lives. TaxAct is an affordable digital tax preparation solution for individuals, business owners and tax professionals. HD Vest Financial Services ® supports an independent network of tax professionals who provide comprehensive financial planning solutions. For more information on Blucora or its businesses, please visit www.blucora.com.