ExlService Holdings Secures $1.0B Revolving and Term Loan Credit Facilities

What Happened

• On August 18, 2026, ExlService Holdings, Inc. (EXLS) filed an 8-K announcing it entered into a Revolving Credit and Term Loan Credit Agreement with PNC Bank, N.A. as administrative agent (PNC Capital Markets, Bank of America, JPMorgan and TD served as lead arrangers/bookrunners). The Credit Agreement provides a $600 million revolving credit facility (including a $50 million swingline and $20 million letter of credit subfacility) and a $400 million term loan facility, together totaling $1.0 billion, each maturing on August 18, 2031 (subject to extension rights). Proceeds were used to repay and terminate the company’s prior Citibank credit agreement and will fund working capital, general corporate purposes, permitted acquisitions and share buybacks.

Key Details

• Total facilities: $600M revolving credit facility + $400M term loan facility; maturity August 18, 2031.
• Pricing: Borrowings at Company’s option of Term SOFR + 1.00%–1.75%, Daily Simple SOFR + 1.00%–1.75%, or Alternate Base Rate + 0.00%–0.75%; commitment fee on unused revolver 0.125%–0.25% (rates tied to Total Net Leverage Ratio).
• Term loan amortization: $2.5M quarterly Sept 30, 2026–June 30, 2028; $5.0M quarterly Sept 30, 2028–June 30, 2031; remaining balance due at maturity.
• Covenants & security: Guarantees by material wholly‑owned U.S. subsidiaries; liens on substantially all assets and pledges of certain equity interests; financial covenants require minimum Interest Coverage Ratio ≥ 3.00x and maximum Total Net Leverage Ratio ≤ 3.50x (temporary 4.00x for qualifying acquisitions for up to four quarters). Incremental facility capacity subject to formula tied to EBITDA and leverage.

Why It Matters

• This refinancing secures liquidity and extends maturities through 2031, giving EXLS flexibility for operations, acquisitions and share repurchases while replacing its prior Citibank facility.
• Investors should note the scheduled term loan amortization that begins in late 2026 and the leverage/coverage covenants that limit additional borrowing capacity and can affect strategic decisions.
• Interest costs will vary with chosen rate option and the company’s leverage level, so future debt expense will depend on EXLS’s performance and Total Net Leverage Ratio.