CCC (WA:CCCP) Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), a leader in prepackaged software services with a market capitalization of $7.46 billion and impressive gross profit margins of 77%, has entered into an amended credit agreement, as reported in a recent SEC filing.
According to InvestingPro analysis, the company maintains a healthy financial position with liquid assets exceeding short-term obligations, making it well-positioned for this credit adjustment. The subsidiary, CCC Intelligent Solutions Inc. (CCCIS), along with its guarantors, amended its existing credit agreement to secure an additional $225 million in incremental term loans.
The amendment, effective as of Thursday, was made with Bank of America, N.A., serving as Administrative Agent, Collateral Agent, and Swingline Lender, along with other lenders.
This financial maneuver aims to refinance certain outstanding loans, extend the maturity of all term loans to January 23, 2032, and adjust interest rates and credit spread for SOFR loans. The company's current total debt of $854.46 million represents a moderate level of leverage, with a comfortable current ratio of 3.19x.
Under the new terms, the interest rate margin for all term loans will be set at 1.00% for base rate loans and 2.00% for SOFR, Euribor, or SONIA loans, depending on the company's debt ratings. If CCCIS maintains a rating of BB- or better with a stable outlook from S&P and Ba3 or better with a stable outlook from Moody's (NYSE:MCO), the rates will be reduced further to 0.75% for base rate loans and 1.75% for the others.
Quarterly repayments of the term loans will commence on March 31, 2025, at 0.25% of the original principal amount, subject to adjustments, with the remaining balance due at maturity. The obligations under the amended credit agreement are guaranteed by the Guarantors and secured by a first-priority interest in substantially all of the Guarantors' assets.
In other recent news, CCC Intelligent Solutions has been making significant strides. The company reported an 8% year-over-year increase in total revenue, reaching $238 million, and a 9% rise in adjusted EBITDA to $102 million. For the fourth quarter, CCC Intelligent Solutions expects revenue between $242.5 million and $246.5 million, and adjusted EBITDA of $103 million to $105 million.
CCC Intelligent Solutions has also finalized the separation terms with Michael Silva, the company's former Executive Vice President, Chief Commercial Officer & Customer Success Officer. The company announced a share repurchase program, authorized by its Board of Directors, with up to $300 million to be funded from available liquidity and free cash flow.
In addition, CCC Intelligent Solutions has signed an agreement to acquire AI firm EvolutionIQ in a transaction valued at $730 million, expected to close in Q1 2025. This acquisition is set to enhance CCC's AI-powered software offerings and expand its market reach.
Morgan Stanley (NYSE:MS) upgraded CCC Intelligent Solutions from Equal-weight to Overweight, reflecting confidence in the company's market position and growth potential. The company's Executive Vice President, Chief Service Delivery Officer, Mary Jo Prigge, will postpone her retirement until May 31, 2025, ensuring leadership stability.
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