ExlService Holdings, Inc.EXLS
ExlService Holdings, Inc. Debt Disclosure
Borrowings
The following tables summarizes the Company’s debt position:
| As of | |||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Revolving credit facility | Term loan facility | Total | Revolving credit facility | Term loan facility | Total | ||||||||||||||||||||||||||||||
| Current portion of long-term borrowings | $ | — | $ | 5,000 | $ | 5,000 | $ | — | $ | 5,000 | $ | 5,000 | |||||||||||||||||||||||
| Unamortized debt issuance costs | — | (114) | (114) | — | (114) | (114) | |||||||||||||||||||||||||||||
| Current portion of long-term borrowings | — | 4,886 | 4,886 | — | 4,886 | 4,886 | |||||||||||||||||||||||||||||
| Long-term borrowings | 205,000 | 88,750 | 293,750 | 190,000 | 93,750 | 283,750 | |||||||||||||||||||||||||||||
| Unamortized debt issuance costs | — | (38) | (38) | — | (152) | (152) | |||||||||||||||||||||||||||||
| Long-term borrowings | 205,000 | 88,712 | 293,712 | 190,000 | 93,598 | 283,598 | |||||||||||||||||||||||||||||
| Borrowings | $ | 205,000 | $ | 93,598 | $ | 298,598 | $ | 190,000 | $ | 98,484 | $ | 288,484 | |||||||||||||||||||||||
Unamortized debt issuance costs for the Company’s revolving credit facility of $507 and $895 as of December 31, 2025 and 2024, respectively, are presented under “Other current assets” and “Other assets,” as applicable, in the consolidated balance sheets.
Credit Agreement
The Company held a $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”), dated as of November 21, 2017 with certain lenders and Citibank N.A. as Administrative Agent. This agreement was amended and restated in April 2022, followed by the First Amendment to Amended and Restated Credit Agreement in August 2024 (the “2024 Credit Agreement”). Among other things, the 2024 Credit Agreement increased revolving credit commitments to $500,000 and provided a new term loan facility of $100,000 with an annual repayment amount of 5%. The increased revolving credit facility and the new term loan facility both mature on April 18, 2027.
Under the 2024 Credit Agreement, obligations are guaranteed by the Company’s wholly-owned material domestic subsidiaries and secured by substantially all of the assets of the Company and its material domestic subsidiaries. The agreement includes a letter of credit sub-facility, permits voluntary prepayments without premium or penalty, and allows borrowings to be used for working capital, general corporate purposes, and permitted acquisitions.
The 2024 Credit Agreement contains customary affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of certain assets or subsidiaries. In addition, the 2024 Credit Agreement contains a covenant to not permit the interest coverage ratio or the total net leverage ratio for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.0 to 1.0 or more than 3.5 to 1.0, respectively. As of December 31, 2025 and 2024, the Company was in compliance with the financial covenants under the 2024 Credit Agreement.
Under the 2024 Credit Agreement, obligations bear interest at a rate equal to either the specified prime rate (alternate base rate) or the adjusted secured overnight financing rate (SOFR), in each case plus an applicable margin tied to the Company’s total net leverage ratio. The applicable margin on the revolving credit facility ranges from 0% to 0.75% per annum on loans pegged to the specified prime rate and 0.88% to 1.75% per annum on loans pegged to the adjusted SOFR, while the margin on the term loan facility ranges from 0.13% to 1.00% per annum on loans pegged to the specified prime rate, and 1.13% to 2.00% per annum on loans pegged to the adjusted SOFR. The revolving credit commitments under the 2024 Credit Agreement are subject to a commitment fee which is also tied to the Company’s total net leverage ratio, and ranges from 0.13% to 0.28% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations.
The effective interest rates of the revolving credit facility and the term loan facility are as follows:
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revolving credit facility | 5.7 | % | 6.3 | % | 6.3 | % | |||||||||||
| Term loan facility | 5.7 | % | 6.5 | % | — | % | |||||||||||
The maturity profile of the Company’s long-term borrowings, excluding debt issuance costs, outstanding as of December 31, 2025 was as follows:
| Revolving credit facility | Term loan facility | ||||||||||
| 2026 | $ | — | $ | 5,000 | |||||||
| 2027 | 205,000 | 88,750 | |||||||||
| Total | $ | 205,000 | $ | 93,750 | |||||||
Letters of Credit
In the ordinary course of business, the Company provides standby letters of credit to third parties primarily for facility leases. As of December 31, 2025 and 2024, the Company had outstanding letters of credit of $1,598 and $761, respectively, that were not recognized in the consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.