ACI refinances with $500 million term loan, $600 million revolver

By Mary-Katherine Stinson

Lexington, Ky., Feb. 29 – ACI Worldwide, Inc. entered into a refinance agreement to its second amended and restated credit agreement on Feb. 26 that provides for a $500 million senior secured term loan and a senior secured revolving credit facility of up to $600 million, according to an 8-K filing with the Securities and Exchange Commission.

Subsidiaries ACI Worldwide Corp. and ACI Payments, Inc. are co-borrowers.

The revolver has a $35 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans.

The agreement extends the maturities of the facility to Feb. 26, 2029, provided that if any of the company’s 5.75% senior notes due 2026 are outstanding 91 days before the maturity date and the company does not have sufficient liquidity, then the maturity date will be the springing maturity date.

Borrowings will bear interest at term SOFR plus an applicable margin. The applicable margin for borrowings under the facilities is, based on the calculation of the applicable consolidated total leverage ratio, between 150 basis points and 250 bps. The company is also required to pay customary fees.

Repaid amounts under the revolver may be reborrowed.

In addition, the agreement contains financial covenants requiring the company to maintain, as of the end of any fiscal quarter, a consolidated total net leverage ratio of less than or equal to 4.25x, a consolidated senior secured net leverage ratio of less than or equal to 3.75x and a minimum consolidated interest coverage ratio of greater than or equal to 3x.

Bank of America, NA as administrative agent and a lender. BofA Securities, Inc., PNC Capital Markets LLC, Wells Fargo Securities, LLC and TD Securities (USA) LLC are joint lead arrangers and joint bookrunners.

ACI is a Naples, Fla.-based provider of payment systems.

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