Shift4 Announces Closing of New Revolving Credit Facility

Rhea-AI Summary

Shift4 Payments, , a subsidiary of Shift4 Payments, Inc. (NYSE: FOUR), has successfully refinanced its existing revolving credit facility. The new facility, completed on September 5, 2024, provides a $450 million senior secured revolving credit facility, with $112.5 million available for letters of credit. This refinancing, arranged with Goldman Sachs Bank USA as the administrative agent, replaces the previous facility from January 2021.

The new facility offers more flexibility for Shift4's global growth plans. It bears interest at either a term SOFR rate plus 2.00% or an alternate base rate plus 1.00%. The facility is set to mature on September 5, 2029, and was undrawn at closing.

Positive

• Increased credit facility from previous amount to $450 million
• Extended maturity date to September 5, 2029
• Improved flexibility for global growth plans
• Undrawn at closing, preserving full borrowing capacity

Negative

• None.

Insights

Financial Analyst

The completion of Shift4's new $450 million revolving credit facility marks a significant financial milestone for the company. This refinancing, led by Goldman Sachs, offers several advantages:

• Increased borrowing capacity from the previous facility
• Extended maturity to September 5, 2029, providing long-term financial flexibility
• Competitive interest rates with options tied to SOFR or base rate
• $112.5 million available for letters of credit, supporting business operations

The undrawn status at closing suggests a strong current liquidity position. This new facility enhances Shift4's ability to fund growth initiatives, potentially including international expansion as hinted by the CFO's statement. Overall, this refinancing strengthens Shift4's financial position and supports its strategic objectives.

Market Research Analyst

Shift4's new credit facility signals confidence from lenders in the company's growth prospects and financial health. Key implications for the integrated payments sector include:

• Shift4's improved financial flexibility may accelerate its market expansion and innovation efforts
• The move from Credit Suisse to Goldman Sachs as lead agent could indicate shifting dynamics in fintech lending
• The 5-year term suggests lenders' long-term faith in the payments industry despite economic uncertainties

This refinancing may prompt competitors to seek similar arrangements, potentially leading to increased M&A activity or technological investments in the sector. Investors should monitor how Shift4 leverages this new facility to gain market share and enhance its product offerings in the competitive payments landscape.

Legal Expert

The refinancing of Shift4's credit facility presents several legal and regulatory considerations:

• The shift from LIBOR to SOFR-based rates aligns with global financial reforms
• The 0.0% interest rate floor provides protection for lenders in a low-rate environment
• The inclusion of a substantial letter of credit facility ($112.5 million) may indicate increased focus on contractual guarantees or international operations

Investors should note that while the new facility offers financial flexibility, it also comes with potential covenants and obligations. The undrawn status at closing suggests careful management of debt obligations. As Shift4 expands globally, compliance with international financial regulations will be crucial. Overall, this agreement appears to balance growth opportunities with prudent financial management.

CENTER VALLEY, Pa.--(BUSINESS WIRE)-- Shift4 Payments, LLC (“Shift4 LLC”), a wholly-owned subsidiary of Shift4 Payments, Inc. (NYSE: FOUR), a leader in integrated payments and commerce technology, today announced the completion on September 5, 2024 of a refinancing of its existing revolving credit facility with a second amended and restated first lien credit agreement entered into with Goldman Sachs Bank USA, as administrative agent and collateral agent, and the lenders and issuing banks party thereto, providing for a $450.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), $112.5 million of which is available for the issuance of letters of credit.

The new Revolving Credit Facility refinanced Shift4 LLC’s prior revolving credit facility under the amended and restated first lien credit agreement entered into on January 29, 2021 with UBS AG, Cayman Islands Branch (as successor to Credit Suisse AG, Cayman Islands Branch), as the original administrative agent and collateral agent, and the lenders and issuing banks party thereto, as amended.

Nancy Disman, Chief Financial Officer of Shift4 Payments, Inc., commented, “We are pleased with the flexibility that this increased credit facility affords us as we continue to grow around the world, and we thank each of the institutions involved for their commitment and confidence in Shift4.”

Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to, at Shift4 LLC’s option, either (x) a term SOFR based rate (subject to a 0.0% floor), plus an applicable margin of 2.00%, or (y) an alternate base rate (equal to the highest of the federal funds effective rate plus 0.50%, the term SOFR rate for an interest period of one month (subject to a 0.0% floor) plus 1.00%, and the prime rate announced by the administrative agent from time to time), plus an applicable margin of 1.00%. The Revolving Credit Facility is scheduled to mature on September 5, 2029.

The new Revolving Credit Facility was undrawn at closing.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any futures results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries; potential changes in the competitive landscape, including disintermediation from other participants in the payments chain; the effect of global economic, political and other conditions on trends in consumer, business and government spending; fluctuations in inflation; our ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers; our reliance on third-party vendors to provide products and services; risks associated with acquisitions; our inability to protect our IT systems and confidential information, as well as the IT systems of third parties we rely on, from continually evolving cybersecurity risks, security breaches and/or other technological risks; compliance with governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, marketing, cryptocurrency, and consumer protection laws across different markets where we conduct our business; our ability to continue to expand our share of the existing payment processing markets or expand into new markets; additional risks associated with our expansion into international operations, including compliance with and changes in foreign governmental policies, as well as exposure to foreign exchange rates; our ability to integrate and interoperate our services and products with a variety of operating systems, software, devices, and web browsers; our dependence, in part, on our merchant and software partner relationships and strategic partnerships with various institutions to operate and grow our business; and the significant influence Jared Isaacman, our CEO and founder, has over us, including control over decisions that require the approval of stockholders. These and other important factors discussed under the caption “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A. in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.

Any such forward-looking statements represent management’s expectations as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

About Shift4 Payments:
Shift4 (NYSE: FOUR) is boldly redefining commerce by simplifying complex payments ecosystems across the world. As the leader in commerce-enabling technology, Shift4 powers billions of transactions annually for hundreds of thousands of businesses in virtually every industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910183116/en/

Investor Relations:

Thomas McCrohan

484.735.0779

investors@shift4.com

Paloma Main

484.954.5768

investors@shift4.com

Media:

Nate Hirshberg

Senior Vice President, Marketing

nhirshberg@shift4.com

Source: Shift4 Payments, Inc.

FAQ

What is the new revolving credit facility amount for Shift4 Payments (FOUR)?

Shift4 Payments (FOUR) has secured a new $450 million senior secured revolving credit facility, with $112.5 million available for the issuance of letters of credit.

When does Shift4 Payments' (FOUR) new revolving credit facility mature?

The new revolving credit facility for Shift4 Payments (FOUR) is scheduled to mature on September 5, 2029.

What are the interest rates for Shift4 Payments' (FOUR) new credit facility?

Borrowings under the facility bear interest at either a term SOFR rate plus 2.00% margin or an alternate base rate plus 1.00% margin, at Shift4's option.

Who is the administrative agent for Shift4 Payments' (FOUR) new revolving credit facility?

Goldman Sachs Bank USA serves as the administrative agent and collateral agent for Shift4 Payments' (FOUR) new revolving credit facility.