Paya Announces Proposed Debt Refinancing

Rhea-AI Summary

Paya Holdings Inc. (NASDAQ: PAYA) announced plans to refinance its $228 million term loan due 2027 and $25 million revolving credit facility due 2025. The refinancing will involve a new $250 million seven-year term loan and a $45 million five-year revolving credit facility, which is expected to remain undrawn at closing. This initiative aims to enhance financial flexibility, reduce interest expenses, and extend debt maturities. The completion is anticipated by late June or early July 2021, but is subject to market conditions and negotiations.

Positive

• Plans to refinance $228 million term loan and $25 million revolving credit facility.
• New financing of $250 million term loan and $45 million revolving credit facility expected to enhance financial flexibility and reduce interest expenses.

Negative

• The refinancing is subject to market conditions and negotiations, with no assurance it will be completed.
• Potential operational, economic, and regulatory risks that could affect the refinancing process.

ATLANTA, June 07, 2021 (GLOBE NEWSWIRE) -- Paya Holdings Inc. (NASDAQ: PAYA) (“Paya” or the “Company”), a leading provider of integrated payment and commerce solutions, today announced plans to refinance its outstanding $228 million term loan facility due 2027 and $25 million revolving credit facility due 2025.

The Company anticipates refinancing the facilities with the proceeds of a new seven-year $250 million term loan and a five-year $45 million revolving credit facility expected to be undrawn at closing. The objectives of the refinancing are to increase the Company’s financial flexibility, reduce interest expense and extend its debt maturity.  The terms of the proposed refinancing will be disclosed upon the completion of the transaction, which is expected to occur in late June or early July.

The proposed refinancing is subject to ongoing negotiation of definitive documentation for the term loan and revolving credit facilities as well as market conditions. There can be no assurances that the refinancing will occur, or, if it does, the terms of the refinancing.

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 refinancing plans does Paya Holdings have for its debt facilities?

Paya Holdings plans to refinance its $228 million term loan and $25 million revolving credit facility with a new $250 million term loan and a $45 million revolving credit facility.

When is Paya expected to complete its refinancing process?

The refinancing process is expected to be completed by late June or early July 2021.

What are the anticipated benefits of Paya's refinancing?

The refinancing aims to enhance the company's financial flexibility, reduce interest expenses, and extend its debt maturity.

What risks are associated with Paya's refinancing plans?

The refinancing is subject to market conditions and ongoing negotiations, posing risks that could affect its completion.

How much payment volume does Paya process annually?

Paya processes over $35 billion of annual payment volume across various payment methods.