SS&C Announces $2,775 Million Refinancing of Term Loans
SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) announced a $2,775 million refinancing of term loans through its subsidiary. The company plans to borrow funds to repay existing loans under the Credit Agreement. The transactions are expected to close in the second quarter of 2024.
- SS&C Technologies Holdings, Inc. plans to refinance term loans to borrow $2,775 million.
- The company intends to use the funds to repay existing loans under the Credit Agreement.
- The refinancing is anticipated to close in the second quarter of 2024.
- There is uncertainty about the successful completion of the transactions.
- The company will incur fees and expenses related to the repayment of existing loans.
Insights
Refinancing existing debt is a strategic move for a company the size of SS&C Technologies Holdings, Inc. The decision to borrow up to
Refinancing at a lower interest rate could reduce interest expenses, potentially increasing net income and earnings per share in the future. However, if market conditions lead to higher rates, SS&C's interest expenses could increase, which would pressure their profit margins. Investors should keep an eye on the company's subsequent earnings calls and SEC filings for details on the terms of the new loans and any changes in their credit rating or outlook due to this refinancing.
Market conditions at the time of the loan will be important to watch. The timing suggests SS&C is either taking advantage of favorable market conditions to secure lower rates or is attempting to preempt a deteriorating credit environment. Given the size of SS&C and its reach in the technology sector, the refinancing could also signal the company's broader strategic intentions to investors.
There might be industry-wide implications as well. Other companies in the sector may follow suit if this move proves beneficial for SS&C, leading to a trend of refinancing to optimize capital structures. Investors should monitor peer companies in the financial and healthcare software services sector to gauge whether this is an isolated event or part of a wider industry trend.
SS&C Technologies, Inc. expects to use the net proceeds of this offering, together with the net proceeds of other unsecured debt and cash on hand, to repay all amounts owed under the term B-3 loans, the term B-4 loans and the term B-5 loans under the Credit Agreement, as well as related fees and expenses.
The foregoing transactions are subject to conditions and are anticipated to close in the second quarter of 2024. However, there can be no assurance that the Company will be able to successfully complete the transactions, on the terms described above, or at all.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in
Caution Regarding Forward-Looking Statements
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects", "estimates", "projects", "forecasts", "may", "assume", "intend", "will", "continue", "opportunity", "predict", "potential", "future", "guarantee", "likely", "target", "indicate", "would", "could" and "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Such statements reflect management's best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, statements relating to the borrowing of the Loans, the anticipated use of the proceeds therefrom, and the risks discussed in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website. Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.
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SOURCE SS&C
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