Paya Announces Pricing of $250 Million Term Loan and $45 Million Revolving Credit Facility

Rhea-AI Summary

Paya Holdings Inc. (NASDAQ: PAYA) announced the pricing of a $250 million senior secured term loan and a $45 million revolving credit facility. The term loan is set at 99.5% of the principal amount, bearing interest at LIBOR plus 3.25%. Proceeds will be used to refinance existing debt, aimed at improving financial flexibility, reducing interest expenses, and extending debt maturity. The transaction is expected to close by early July, subject to customary conditions.

Positive

• Pricing of a $250 million term loan and a $45 million credit facility.
• Proceeds will refinance existing debt, improving financial flexibility.
• Expected to reduce interest expenses and extend debt maturity.

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• None.

ATLANTA, June 21, 2021 (GLOBE NEWSWIRE) -- Paya Holdings Inc. (NASDAQ: PAYA) (“Paya” or the “Company”), a leading provider of integrated payment and commerce solutions, today announced the pricing of a seven-year, $250 million senior secured term loan and a five-year, $45 million senior secured revolving credit facility.

The term loan will be issued at 99.5% of the aggregate principal amount and will bear interest at a rate of LIBOR plus 3.25% with a 0.75% LIBOR floor and the revolving credit facility will bear interest at a rate of LIBOR plus 3.25% with no floor. The revolving credit facility is expected to be undrawn at closing. As previously disclosed, the Company intends to use the proceeds from the term loan to repay its outstanding term loan facility. The objectives of the refinancing are to improve the Company’s financial flexibility, reduce interest expense and extend its debt maturity. 

The transaction is scheduled to close in late June or early July. The closing of the term loan and the revolving credit facility is subject to customary closing conditions.

Forward Looking Statements
This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward‐looking statements may be identified by the use of words such as “intend,” “seek,” “anticipate,” “believe,” “expect,” “propose,” “estimate” and “plan,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters.

Such forward looking statements include the terms and the completion of the proposed refinancing. Such forward looking statements are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements. These factors include, but are not limited to: (1) operational, economic, political and regulatory risks; (2) natural disasters and other business disruptions including outbreaks of epidemic or pandemic disease; (3) changes in demand within a number of key industry end‐markets and geographic regions; (4) failure to retain key personnel; (5) the inability to recognize deferred tax assets and tax loss carry forwards; (6) future operating results fluctuating, failing to match performance or to meet expectations; and (7) other risks and uncertainties indicated from time to time in the Annual, Quarterly and Current Reports and other documents filed with the Securities and Exchange Commission by Paya. You are cautioned not to place undue reliance upon any forward‐looking statements, which speak only as of the date made. Paya undertakes no commitment to update or revise the forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

About Paya
Paya (NASDAQ: PAYA) is a leading provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. The company processes over $35 billion of annual payment volume across credit/debit card, ACH, and check, making it a top 20 provider of payment processing in the US. Paya serves more than 100,000 customers through over 2,000 key distribution partners focused on targeted, high growth verticals such as healthcare, education, non-profit, government, utilities, and other B2B goods and services. The business has built its foundation on offering robust integrations into front-end CRM and back-end accounting systems to enhance customer experience and workflow. Paya is headquartered in Atlanta, GA, with offices in Reston, VA, Fort Walton Beach, FL, Dayton, OH, Mt. Vernon, OH, Dallas, TX and Tempe, AZ.

Investor Contact:
Matt Humphries, CFA
Head of Investor Relations
matt.humphries@paya.com

Media Contact:
Kerry Close
212-784-5717
kclose@groupgordon.com

FAQ

What is the recent announcement by Paya Holdings about their financing structure?

Paya Holdings announced a $250 million term loan and a $45 million credit facility to refinance existing debt, aiming for improved financial flexibility.

What are the interest rates for the new loans announced by Paya?

The term loan bears interest at LIBOR plus 3.25%, while the revolving credit facility also bears interest at LIBOR plus 3.25%.

When is the transaction expected to close for Paya's new loans?

The transaction is expected to close in late June or early July, pending customary closing conditions.

How will Paya use the proceeds from the new term loan?

Paya intends to use the proceeds from the term loan to repay its outstanding term loan facility.