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SS&C seeks $2.775 billion for loan refinancing

EditorNatashya Angelica
Published 05/02/2024, 03:42 AM
SSNC
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WINDSOR, Conn. - SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a major provider of software and services for the financial and healthcare sectors, announced plans to borrow up to $2.775 billion in incremental term B-8 loans under its existing credit agreement. The transaction is subject to market and other conditions and is expected to occur in the second quarter of 2024.

The intended borrowing will be conducted through one of SS&C's subsidiaries under the credit agreement that has been in place since April 16, 2018. The proceeds from this borrowing, along with other unsecured debt and available cash, are earmarked to repay the company’s existing term B-3, B-4, and B-5 loans, including related fees and expenses.

SS&C Technologies, founded in 1986 and headquartered in Windsor, Connecticut, serves approximately 20,000 clients worldwide, including large corporations as well as small and mid-sized firms. The company's expertise spans across essential technology and services for the financial services and healthcare industries.

The announcement contains forward-looking statements regarding the company's plans, which are subject to various risks and uncertainties that could cause actual results to differ from those projected. These statements are based on management’s current expectations and assumptions.

The company cautions that there can be no guarantee that the borrowing will be completed as planned, or at all, and emphasizes the importance of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 for forward-looking statements. SS&C has stated that it does not undertake any obligation to update or revise these statements, except as required by law.

Investors and market watchers will be monitoring the situation closely, as the successful completion of this refinancing could impact SS&C’s financial structure and future operations. This report is based on a press release statement issued by SS&C Technologies Holdings, Inc.

InvestingPro Insights

As SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) navigates through its refinancing strategy, investors may be interested in the company's current financial health and market position. According to recent InvestingPro data, SS&C has a market capitalization of $15.14 billion, reflecting its significant presence in the software and services industry for the financial and healthcare sectors.

The company's P/E ratio stands at 23.79, with a slight adjustment to 23.02 when considering the last twelve months as of Q1 2024. This valuation metric can offer insights into how the market currently values SS&C relative to its earnings.

InvestingPro Tips highlight that SS&C has raised its dividend for 7 consecutive years, suggesting a commitment to returning value to shareholders. The company also boasts impressive gross profit margins, which were reported at 49.14% for the last twelve months as of Q1 2024. This financial strength could be a reassuring factor for investors as the company approaches its borrowing plans.

For those considering a deeper dive into SS&C's financials and future prospects, there are additional InvestingPro Tips available, including insights on earnings revisions by analysts and the company's trading volatility. With an additional 9 tips listed on InvestingPro, investors can gain a comprehensive understanding of SS&C's performance and outlook. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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