Epiq Systems pays down $50 million of debt using cash and new shares; expands credit lineBy AP
Tuesday, June 15, 2010
Epiq Systems pays down debt using cash, new shares
KANSAS CITY, Kan. — Epiq Systems said Tuesday it had paid off or refinanced $50 million in debt that came due that day.
The Kansas City-based legal technology company said it used cash on hand to pay down $22.8 million of the debt and it converted the remaining $27.2 million into about 2.3 million new shares of common stock priced at $11.67 per share.
The refinancing reduces Epiq’s annual interest expense by $2 million and cuts shareholder equity by $27.2 million.
Also Tuesday, Epiq announced that its credit line with a group of banks was increased to $140 million from $100 million and can be expanded to $200 million in all, up from $175 million.
The credit line was extended for an additional four-year period, Epiq said.