Working Capital Facilities

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Working Capital Facilities

Credit Facility

The Company maintains a senior secured syndicated credit facility, dated August 5, 2014, among Ebix, Inc., as borrower, its subsidiaries party thereto from time to time as guarantors, Regions Bank (As administrative agent and collateral agent) and the lenders party thereto from time to time (as amended from time to time, the "Credit Facility") that provides a $450 million revolving line of credit (the "Revolver") as well as a term loan (the "Term Loan"), which at December 31, 2022 had a balance of $189.4 million.

The Credit Facility was to mature on February 21, 2023, but the Company negotiated an extension of the maturity of the Credit Facility to May 23, 2023. The outstanding balance of the Credit Facility as of December 31, 2022 of $639.3 million. The Company is pursuing several options to materially reduce or pay off in total the Credit Facility, which may require an extension of the Credit Facility maturity date. In addition to the EbixCash IPO, the Company is also pursuing multiple other capital raising strategies to address the refinancing requirements of the Credit Facility, both at the corporate level and within the EbixCash operations in India. If necessary, the Company will also pursue other strategic options, and the Board of Directors has formed a special committee to assist in further evaluating alternatives to address the capital required to refinance the Credit Facility or secure an extension of the Credit Facility.

On February 21, 2023, the Company entered into Amendment No. 13 to its Credit Facility. Amendment No. 13 provided for, among other things, an extension of the maturity date from February 21, 2023 to May 23, 2023. The Company was required to make a $5 million prepayment of the Revolver on February, 21, 2023 and will be required to make an amortization payment on the Term Loan in the amount of $5 million on March 31, 2023. Any repayments under the Revolver will be accompanied by a corresponding reduction in the aggregate revolving commitments. Lastly, amendment No. 13 modified certain other provisions within the Credit Agreement and has resulted in an approximately 1% per annum interest rate increase beginning February 21, 2023.

On April 9, 2021, The Company entered into Amendment No. 12 to its Credit Facility. Amendment No. 12 provided for, among other things, a waiver of any potential event of default arising under the Credit Facility from the failure to timely deliver the Company's audited consolidated financial statements and related compliance certificate for the year ended December 31, 2020, provided that there is no good faith determination by the requisite lenders under the Credit Facility of a "Material Circumstance" (as defined and further described in Amendment No. 12), which determination (if any) may only be made within a specified period described in Amendment No. 12 and is subject to certain cure rights of the Company. Amendment No. 12 also modified the applicable margin that applies from the date of the amendment forward, modified certain mandatory prepayment provisions, as well as certain other covenants related to restricted payments, investments and certain reporting requirements.

On March 31, 2021, Ebix entered into Amendment No. 11 to the Credit Facility. Amendment No. 11 provided, for, among other things, a limited waiver through April 10, 2021, of any potential event of default arising under the Credit Facility from failure to deliver the Company's audited consolidated financial statements and related compliance certificate for the year

ended December 31, 2020. Amendment No. 11 also modified certain covenants contained in the Credit Facility, including with respect to certain permitted restricted payments and investments.

At December 31, 2022, the outstanding balance on the Revolver was $449.9 million and the facility carried an interest rate of 9.6%. The outstanding balance is included in the current liabilities section of the consolidated balance sheets due to the original maturity date of February 2023, which was extended to May 2023 subsequent to December 31, 2022. During 2022, the average and maximum outstanding balances on the Revolver were $440.1 million and $449.9 million, respectively, and the weighted average interest rate on the Revolver was 6.9%. At December 31, 2021, the outstanding balance on the Revolver was $439.4 million and the facility carried an interest rate of 3.50%. The outstanding balance on the Revolver was included in the long-term liabilities section of the consolidated balance sheets. During 2021, the average and maximum outstanding balances on the Revolver were $439.4 million and $439.4 million, respectively, and the weighted average interest rate on the Revolver was 5.2%.

At December 31, 2022, the outstanding balance on the Term Loan was $189.4 million, of which $189.4 million is due in May 2023. $23.5 million of principal payments were made on the Term Loan during 2022, of which $20.7 million were scheduled amortization payments. The Company had a scheduled $7.5 million term loan principal repayment due on December 31, 2022. However, the agent bank in the syndicate of banks did not process the payment until the first business day of January 2023. Thus, the Company's total debt outstanding under the Credit Facility is $7.5 million higher at December 31, 2022 than otherwise would have been if the $7.5 million scheduled repayment had been effected as of December 31, 2022. The Term Loan also carried an interest rate of 9.6% at December 31, 2022, and the weighted average interest rate on the Term Loan during 2022 was 6.8%. The outstanding balance of the Term Loan is included in the current liabilities section of the consolidated balance sheets due to the original maturity date in February 2023, which was extended to May 2023 subsequent to December 31, 2022. At December 31, 2021, the outstanding balance on the Term Loan was $212.9 million, of which $28.2 million was due within twelve months. This Term Loan carried an interest rate of 5.5% at December 31, 2021, and the weighted average interest rate on the Term Loan during 2021 was 5.1%.

At December 31, 2022, the Company's consolidated balance sheets include $1.2 million of remaining deferred financing costs in connection with the Credit Facility, which are being amortized as a component of interest expense through the maturity of the Credit Facility in May 2023. $0.7 million of such deferred financing costs pertain to the Revolver and $0.5 million pertains to the Term Loan, of which $0.5 million is netted against the Term Loan as reported on the consolidated balance sheets. At December 31, 2021, the Company's consolidated balance sheets included $4.7 million of remaining deferred financing costs in connection with the Credit Facility, with $2.8 million pertaining to the Revolver and $1.9 million pertaining to the Term Loan, of which $1.6 million was netted against the current portion of the Term Loan and $0.3 million was netted against the long-term portions of the Term Loan as reported on the consolidated balance sheets.

Working Capital Facilities

The Company maintains working capital debt facilities with banks in India for working capital funding requirements to support our foreign exchange, travel and remittance businesses. We are required to extend short-term credits to franchisee networks (B2B) and corporate customers. Additionally, we are required to maintain minimum levels of foreign currency inventory across branches and airport operations.  Typically, these facilities carry interest rates 10.00% to 11.00% and are rupee denominated working capital lines and are collateralized against the receivables of these businesses and existing foreign currency inventory on hand.

As of December 31, 2022 and 2021, the total of these working capital facilities was $3.4 million and $5.6 million, respectively, and is included in current liabilities in the Company's consolidated balance sheets.