Ciber completes $155 million credit financing deal with multiple banks

Ciber completes credit financing deal

GREENWOOD VILLAGE, Colo. — Ciber Inc., facing tougher terms on its borrowing, said Thursday it completed a 3-year, $155 million financing package led by Bank of America.

The technology-consulting company said that mostly because of the recession, its banking facility “has been an issue” since early this year.

CEO Mac Slingerlend said the company faced a debt-ratio covenant tightening to over 20 percent this year, and its former bank agent wasn’t willing to relax the terms without other concessions.

Bank of America is the administrative agent of the financing package, and Banc of America Securities LLC and BBVA Compass Bank are the joint lead arrangers and co-book runners. The company said its existing lenders are involved in the new facility, and PNC Bank was added as a new lender.

The lenders in the new financing are Bank of America, BBVA Compass, U.S. Bank, Union Bank, IBM Credit, KeyBank and PNC.

Ciber’s second-quarter profit plunged 43 percent from a year ago as revenue slid by 18 percent.

Ciber sold 9 million shares of stock in the first half of the year, raising $23.2 million to pay down debt on its revolving credit facility. At June 30, the company had $161.9 million available to it from the facility, according to a regulatory filing.

Shares of Greenwood Village-based Ciber fell 8 cents to $3.48 in regular trading, then rose 2 cents to $3.50 in extended trading. They have ranged from $2.03 to $8.97 in the past year.