Business consulting services provider Huron Consulting Group Inc. HURN recently amended its existing secured credit facility to extend maturity as well as reduce its interest burden. The modified credit facility will also augment the borrowing capacity of the company to pursue strategic investments to support long-term growth.
The erstwhile senior secured credit facility comprised of a five-year revolving credit facility under which Huron may borrow up to $247.5 million and a $202.5 million five-year term loan facility. As of Dec 31, 2014, Huron had $143.8 million worth of outstanding debt under the senior secured credit facility, all of which was under the term loan.
The amended credit facility more than doubles the existing borrowing capacity by increasing the revolving line of credit from $247.5 million to $500 million and eliminates the term loan. At the same time, the refurbished credit facility reduces the interest burden by lowering the interest rate spread by 25 to 50 basis points.
Huron has also extended the maturity schedule of the credit facility from Sep 25, 2018 to Mar 31, 2020. This would enable the company to exploit the favorable market conditions to capitalize on inorganic growth opportunities to fuel its growth engine.
With in-depth analysis, customized advice and tailor-made solutions for sustainable and measurable results, Huron helps clients in diverse industries to improve performance, reduce costs, leverage technology, address regulatory changes and stimulate growth. The company offers consulting services to healthcare organizations, leading academic institutions, Fortune 500 companies, governmental entities and law firms.
Huron currently has a Zacks Rank #3 (Hold). Other notable companies in the industry worth mentioning include Corporate Executive Board Co CEB, Exponent Inc. EXPO and CRA International Inc. CRAI, each carrying a Zacks Rank #2 (Buy).
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