22 Mar 2011 07:00
For Immediate Release
March 22, 2011
Billing Services Group Limited
('BSG' or the 'Company')
Credit Agreement Amendment
Further to the announcement of February 15, 2011, the Company yesterday completed the amendment to its credit agreement. A copy of the entire amendment may be found on the Company's website (www.bsgclearing.com) under the 'Investor Relations - Corporate Governance - Credit and Pledge Agreements' section. Among other items, the amendment will result in an incremental principal payment of $5 million on March 31, 2011 and increased pricing to LIBOR plus 5.0% p.a. through March 31, 2012, with additional interest of 3.0% p.a. either in cash or pay-in-kind, at the Company's option, commencing April 1, 2012 (original pricing was LIBOR plus 4.25% p.a.). In addition, under the amendment, no payment of dividends to shareholders is currently allowed; the credit agreement originally provided the Company with a limited ability to make dividend payments.
The Board of Directors is committed to paying down the Company's debt as quickly as the financial performance of the business allows and continues to explore ways to increase shareholder value, including pursuing debt refinancing options.
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Inquiries:
Billing Services Group Limited +1 210 949 7000
Greg Carter
Norm Phipps
Evolution Securities Limited +44 (0)20 7071 4300
Stuart Andrews
BSG Media Relations +1 210 326 8992
Leslie Komet Ausburn
About BSG:
BSG is headquartered in San Antonio, Texas, USA and traded on the London Stock Exchange (AIM: BILL). For more information on BSG, visit www.bsgclearing.com.