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New Credit Facility Lowers Annual Interest Expense, Increases Capacity, and Extends Maturity.
Fremont, CA: TransPerfect, the largest global provider of language and technology solutions for global business, announced today that it had refinanced its existing credit facility with a new 500 million dollars credit facility (comprising a 250 million dollars term loan and a 250 million dollars revolving credit line) maturing on August 27, 2026. The new credit arrangement replaces the company's prior credit facility of 450 million dollars.
TransPerfect President and CEO Phil Shawe stated, "This refinancing is a significant event that validates TransPerfect's record of consistently growing revenues and cash flow while reducing overall leverage. Our company's ability to improve our capital structure and to access the credit markets is a direct reflection of our 7,000 team members worldwide. TransPerfect staff has continued to deliver at a high level for our clients in the wake of any and all adversity. Their professionalism, dedication, and resilience is inspiring."
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TransPerfect previously disclosed 267 million dollars in billed revenue for the second quarter of 2021, a 35 percent increase over the same period in 2020. Revenues for the first half of 2021 are on track to reach 1 billion dollars in annual revenue for the first time in the company's history.
The new facility was made possible by a banking syndicate led by JPMorgan Chase Bank, N.A., Bank of America, N.A., and Citibank, N.A., with Bank of America serving as the sole administrative agent. In addition, Baker Botts LLP served as transaction counsel for TransPerfect, and CDX Advisors served as a financial advisor.
"Bank of America was pleased by the strong market receptivity to the transaction. TransPerfect has demonstrated remarkable resilience during difficult times, and we are gratified to help advise them through their journey and growth," said Stacey Hadash, Market Executive for Global Commercial Banking at Bank of America.
Shawe concluded, "This new facility is also a testament to TransPerfect's relationships with our banking partners. We appreciate not only their trust, but also their recognition of our performance—in terms of more favorable rates and an increased ability to pursue growth opportunities."
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