Navigant Consulting Inc.
) recently extended the debt maturity of its $400 million
revolving credit facility by more than two years. The current
maturity under the credit agreement is Sep 19, 2018, as against
the earlier date of May 27, 2016.
A revolving credit facility allows a company to borrow from
the bank up to its credit limit. The funds are available to the
company on demand without it having to face the hassle of
re-applying each time the need for funds arises.
The company has the option to pay borrowings and repayments in
multiple currencies including U.S. Dollars, Canadian Dollars,
United Kingdom Pound Sterling and Euro. Additionally, as per
the financial covenants, the company has approximately $270.0
million available for additional borrowings under the credit
facility as on Jun 30, 2013.
Over the past few years, Navigant has reduced its bank debts
from $203.0 million as of Dec 31, 2010 to $128.1 million as of
Jun 30, 2013. The company has also been successful in complying
with the terms and conditions of the financial covenants under
the credit agreement.
Navigant has maintained its key financial parameters, namely
leverage ratio and interest coverage ratio well within the range
specified in the credit agreement. Moreover, the company has
successfully conformed to the other terms as well.
The extension of the credit facility signifies banks'
confidence about the company's long-term potential. Additionally,
the extended credit facility will provide Navigant with more
operational and financial flexibility, thereby boosting its
Navigant is a global management consulting company serving
energy-based and other regulated industries. The company helps
clients to succeed in a business environment of changing
regulations, stiff competition and evolving technology by
providing effective management consulting services in areas such
as business strategy development, marketing and sales, operations
management, information technology and customer care.
Navigant currently has a Zacks Rank #3 (Hold). Some
better-placed stocks in the same sector worth considering include
Information Services Group, Inc.
Corporate Executive Board Co
). While both Exponent Inc. and Corporate Executive carry a Zacks
Rank #2 (Buy), Information Services has a Zacks Rank #1 (Strong
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