Priority Technology Holdings, Inc. Announces Successful Completion of Debt Refinance
21 Maggio 2024 - 2:00PM
Business Wire
Priority Technology Holdings, Inc. (NASDAQ: PRTH) ("Priority" or
the "Company"), the platform for unified commerce that delivers
integrated payments and banking services at scale, today announced
the successful completion of its debt refinance. The refinancing
included the payoff of approximately $170 million of preferred
equity and reduces the cost of the outstanding debt by 100 basis
points.
As part of the transaction, Priority issued a new $835 million
term loan and established a new $70 million revolving line of
credit. The loan proceeds were used to refinance and reprice its
existing $653 million term loan due April 2027 and redeem
approximately $170 million of preferred equity leaving $110 million
of preferred equity outstanding. The refinancing transaction was
completed through a new credit agreement. Following this
transaction, PRTH anticipates having a net leverage ratio of
approximately 4.5x based.
Tim O’Leary, Chief Financial Officer, commented, “We are pleased
with the overwhelmingly positive response from our existing lenders
as well as new lenders who supported Priority in our refinancing.
We achieved a 100 basis point reduction in our borrowing rate while
diversifying our investor base and extending the term loan maturity
to May 2031. The net effect of the refinancing and preferred equity
redemption will increase our free cash flow by over $5.5 million
while increasing net income available to common shareholders by
nearly $20 million on an annualized basis. The new debt agreement
also provides flexibility for Priority to continue to execute on
our Unified Commerce vision with a goal of delivering strong
shareholder value.”
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version on businesswire.com: https://www.businesswire.com/news/home/20240521582532/en/
Alison Jones, alison.jones@prth.com
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