Ebix amends stalking horse agreement, pays down DIP financing

By Sarah Lizee

Olympia, Wash., April 5 – Ebix, Inc. amended its stalking horse asset purchase agreement with buyer Zinnia Distributor Solutions, LLC, according to an 8-K filed with the Securities and Exchange Commission.

The agreement was amended to add a tax holdback amount equal to $8 million, to adjust the estimated purchase price and to add a provision regarding Indian tax liability.

The adjusted preliminary purchase price of $386.5 million was paid by the purchaser and the net proceeds were used to pay down the drawn debtor-in-possession facility, including the rolled-up portion of the prepetition DIP, in the amount of about $93 million, and some expenses of sale.

The balance is currently held subject to bankruptcy court approval.

Zinnia is an Eldridge business and life insurance and annuity technology and service company.

The assets include Ebix’s North American Life and Annuity assets.

Ebix is a Johns Creek, Ga.-based international supplier of on-demand software and e-commerce services to the insurance, financial, health care and e-learning industries. The company filed bankruptcy on Dec. 17 under Chapter 11 case number 23-80004.

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