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EBIX INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement

May 27, 2014



Item 1.01. Entry into a Material Definitive Agreement.

On May 19, 2014, Ebix, Inc. (the "Company") and certain of its subsidiaries entered into a Third Amendment (the "Third Amendment") to the Credit Agreement, dated April 26, 2012 (as previously amended), among the Company, Wells Fargo Capital Finance, LLC, as a lender, RBS Citizens, N.A. as a lender, and Citibank, N.A., as Administrative Agent and as a lender (the "Credit Agreement").

The Third Amendment amends the Company's obligations with respect to certain covenants under the Credit Agreement, to provide flexibility to the Company to make certain specified business acquisitions, while allowing the Company to make early payments towards reduction of its bank debt.

Furthermore, the Third Amendment amends the Credit Agreement by reducing the revolving commitments of the lenders to $7,839,996 as of May 19, 2014 and, as of September 30, 2014, the revolving commitments of the lenders will be terminated and the balance will be reduced to $0. In connection with the execution of the Third Amendment, the Company made a principal payment in the amount of $15,000,000 against the revolving loans under the Credit Agreement such that the aggregate principal amount of such revolving loans was reduced to $7,839,996.

Additionally, the Company will make, in addition to the scheduled principal payments otherwise required, a prepayment of principal on the term loans under the Credit Agreement in the aggregate principal amount of $5,000,000 on December 31, 2014.

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Source: Edgar Glimpses