Published March 4, 2014
Daniel Island-based Blackbaud Inc. has entered into a new credit facility in the aggregate amount of $325 million.
The business loan includes a $175 million senior secured term A loan and a $150 million senior secured revolving credit facility with the capacity to expand the facility incrementally by $200 million.
Blackbaud CEO and President Mike Gianoni said the new credit facility gives the tech firm increased operational and financial flexibility, lower capital costs, extended maturity and increased borrowing capacity.
“We will continue to prudently allocate our capital as we continue to increase our high-quality recurring revenue streams,” as the company focuses on software as a service and cloud-based platforms, Gianoni said in a news release.
Last year, Blackbaud reduced its debt and increased cash flow from operations to generate record operating income of $101.3 million, up 34% from 2012, according to Tony Boor, Blackbaud’s CFO and senior vice president.
“The current favorable market conditions provide an opportunity for us to enter into this new credit facility amidst strong oversubscription to optimize our capital structure and will enable greater flexibility for our company to pursue growth and invest in the business,” Boor said in a news release.
Blackbaud provides software and services for nonprofits. Blackbaud is traded on the Nasdaq under stock symbol BLKB.