Infor ‘comfortable’ with cash, to de-lever further, refis loans in Q3

By Devika Patel

Knoxville, Tenn., March 19 – Infor, Inc. intends to keep deleveraging and is “very comfortable with its cash position,” according to its chief financial officer.

“Overall, we do want to continue to de-lever,” Kevin Samuelson said on the company’s third quarter earnings conference call on Monday.

In the third quarter ended Jan. 31, the company refinanced its euro tranche B-1 term loans and, later on, extended the maturity of its revolver to 2022.

“During Q3 18, we refinanced our outstanding euro-based term loan also, subsequent to the end of Q3 18, we extended the maturity of our revolver from April 5, 2019 to Feb. 1, 2022,” Samuelson said.

“Our revolver commitment of $120 million remains unchanged and undrawn,” he said.

The company is weighing options to improve its capital structure and will “come to market” when it “makes sense.”

“We continue to look at options to improve our capital structure,” Samuelson said.

“When the payback period makes sense, you can expect us to come to market,” he said.

As of Jan. 31, Infor had $357.1 million in cash and cash equivalents.

“We’re very comfortable with our cash position,” Samuelson said.

As of the end of Jan. 31, the company’s net leverage was 6.3x cash EBITDA and 7.1x adjusted EBITDA.

On Nov. 22, Infor and subsidiary Infor (US), Inc. entered into a ninth amendment to its credit agreement with Bank of America, NA as administrative agent, lead arranger and bookrunner.

The amendment provides for the refinancing of its euro tranche B-1 term loans with €1,002,000,000 of new euro tranche B-2 term loans.

The B-2 loans mature on Feb. 1, 2022 and bear interest at Libor plus 225 basis points.

On Feb. 23, the company and Infor (US) amended their credit agreement dated April 5, 2012 to extend the maturity of the revolving credit facility to Feb. 1, 2022 from April 5, 2019.

As of March 19, the revolver was undrawn.

Infor is a New York-based enterprise software provider.

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