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January 06, 2006 at 08:36 AM
A business support services company has secured a new source of financing.
The company, BISYS Group Inc., New York, has arranged for a credit facility that will supply up to $450 million in cash from a unit of SunTrust Banks Inc., Atlanta.
BISYS has been having trouble filing financial reports with the U.S. Securities and Exchange Commission because of systems and accounting problems. The filing troubles disrupted the company’s use of its old credit facility, because contract terms for the old credit facility required BISYS to file copies of its financial reports with its lenders, according to BISYS.
The new credit facility, which has a term of 1 year, will provide up to $100 million in revolving credit and a term loan for up to $300 million.
BISYS says the credit facility that was terminated provided only $150 million in revolving credit, and it notes that the reporting obligations associated with the new credit facility are simpler.
