Billing Services Group further reduces debt

1st Jul 2011 11:50

Shares of payment and financial risk management provider Billing Services Group soared 20% following its announcement that it had repaid $4.4m of its senior debt and entered into a new credit facility with reduced pricing. Billing services, which provides services primarily to the telecommunications industry, said it has refinanced its debt facility and at the close of business on June 30, the company's total outstanding debt was $48m.In a similar deal, the company, in April, had repaid $8.4m of its senior debt and recorded its total outstanding senior debt to be $52.4m, as of March 31.The details of the new credit facility includes the initial pricing of 4.00% per annum with the ability to have further rate reductions based on decreasing leverage. The facility carries a lower quarterly amortisation and allows for dividend payments, share repurchases and similar distributions under limited circumstances and subject to prior lender consent, the company said in its statement. The company said, it "reaffirms its commitment 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."AR