Acquisition-minded First Financial Management Corp. obtained an expanded $450 million credit line on far better terms than its existing bank loans, which will be replaced by the new credit.
Patrick Thomas, chairman of the Atlanta-based company, said the new three-year revolver would be used for general corporate purposes, including acquisitions, "should suitable opportunities arise."
First Financial doesn't have any specific targets in mind at the moment.
A major provider of data processing services to the banking industry, First Financial also owns Georgia Federal FSB, the state's largest thrift.
Cost of Funds
The borrowing rate on the new credit, led by Chase Manhattan Bank, is 43.75 basis points over the benchmark London interbank offered rate.
First Financial has been paying 100 basis points over Libor on its existing term loan and revolver, also led by Chase.
A Chase official cited the company's "consistently improving operating performance, and its strengthened cash flow and capital position" as reasons for the lower rate.
$150 Million Outstanding
As of March 31, First Financial had $150 million outstanding under its term loan agreement, which was scheduled to expire at the end of 1996.
No funds were drawn under a separate $100 million revolver, which was set to expire at the end of this year.
Chase led a syndicate of 15 banks that provided the new credit, including all eight members of First Financial's existing bank group.