Priority Technology Holdings, Inc., Announces Redemption of Preferred Stock and Simplified Capital Structure
Priority Technology Holdings (NASDAQ: PRTH) announced the complete redemption of its remaining preferred stock, totaling $113.3 million, including $2.6 million in accrued dividends. The redemption was funded through a $115 million increase to its existing term loan due May 2031. This follows the company's May 2024 establishment of an $835 million term loan and redemption of $170 million in preferred stock. The transaction is expected to increase net income available to common shareholders by $8.9 million annually, adding to the $22 million positive impact from May 2024 transactions. The company's Q3 2024 adjusted earnings per share would have been $0.10 compared to the reported $0.07 if the transaction had occurred earlier.
Priority Technology Holdings (NASDAQ: PRTH) ha annunciato il riscatto completo delle sue azioni privilegiate rimanenti, per un totale di 113,3 milioni di dollari, inclusi 2,6 milioni di dollari in dividendi accumulati. Il riscatto è stato finanziato attraverso un aumento di 115 milioni di dollari al suo prestito a termine esistente, in scadenza a maggio 2031. Questo segue l'istituzione da parte della società, a maggio 2024, di un prestito a termine da 835 milioni di dollari e il riscatto di 170 milioni di dollari in azioni privilegiate. Si prevede che la transazione aumenterà il reddito netto disponibile per gli azionisti comuni di 8,9 milioni di dollari all'anno, aggiungendosi all'impatto positivo di 22 milioni di dollari derivante dalle transazioni di maggio 2024. Gli utili per azione rettificati della società nel terzo trimestre 2024 sarebbero stati di 0,10 dollari rispetto ai 0,07 dollari riportati se la transazione fosse avvenuta prima.
Priority Technology Holdings (NASDAQ: PRTH) anunció el rescate completo de sus acciones preferentes restantes, totalizando 113,3 millones de dólares, incluidos 2,6 millones de dólares en dividendos acumulados. El rescate se financió a través de un aumento de 115 millones de dólares en su préstamo a plazo existente, que vence en mayo de 2031. Esto sigue a la constitución por parte de la empresa, en mayo de 2024, de un préstamo a plazo de 835 millones de dólares y al rescate de 170 millones de dólares en acciones preferentes. Se espera que la transacción incremente el ingreso neto disponible para los accionistas comunes en 8,9 millones de dólares anualmente, sumando al impacto positivo de 22 millones de dólares de las transacciones de mayo de 2024. Las ganancias ajustadas por acción de la compañía en el tercer trimestre de 2024 habrían sido de 0,10 dólares en comparación con los 0,07 dólares reportados si la transacción hubiera ocurrido antes.
우선주 잔여물 전량 전부 상환을 발표한 Priority Technology Holdings (NASDAQ: PRTH)는 총 1억 1,330만 달러, 이자 발생분 260만 달러를 포함합니다. 이 상환은 2031년 5월 만기 기존 기한 대출의 1억 1,500만 달러 증가를 통해 자금 조달되었습니다. 이는 2024년 5월 8억 3,500만 달러 기한 대출이 설립되고 1억 7,000만 달러 우선주의 상환이 이루어진 이후입니다. 이 거래는 일반 주주들에게 연간 890만 달러의 순이익을 증가시킬 것으로 예상되며, 2024년 5월 거래로 인한 2,200만 달러의 긍정적인 영향에 추가됩니다. 만약 거래가 이전에 진행되었더라면, 회사의 2024년 3분기 조정 주당 순이익은 0.10달러로 보고된 0.07달러에 비해 높았을 것입니다.
Priority Technology Holdings (NASDAQ: PRTH) a annoncé le rachat complet de ses actions privilégiées restantes, totalisant 113,3 millions de dollars, y compris 2,6 millions de dollars en dividendes accumulés. Le rachat a été financé par une augmentation de 115 millions de dollars de son prêt à terme existant, qui arrive à échéance en mai 2031. Cela fait suite à l'établissement par l'entreprise, en mai 2024, d'un prêt à terme de 835 millions de dollars et au rachat de 170 millions de dollars d'actions privilégiées. La transaction devrait augmenter le revenu net disponible pour les actionnaires ordinaires de 8,9 millions de dollars par an, s'ajoutant à l'impact positif de 22 millions de dollars des transactions de mai 2024. Les bénéfices ajustés par action de l'entreprise pour le troisième trimestre 2024 auraient été de 0,10 dollar par rapport aux 0,07 dollar rapportés si la transaction avait eu lieu plus tôt.
Priority Technology Holdings (NASDAQ: PRTH) gab die vollständige Rückzahlung seiner verbleibenden Vorzugsaktien bekannt, die insgesamt 113,3 Millionen Dollar beträgt, einschließlich 2,6 Millionen Dollar an aufgelaufenen Dividenden. Die Rückzahlung wurde durch eine Erhöhung des bestehenden Darlehens um 115 Millionen Dollar finanziert, das im Mai 2031 fällig ist. Dies folgt der Einrichtung eines 835 Millionen Dollar-Darlehens und der Rückzahlung von 170 Millionen Dollar an Vorzugsaktien durch das Unternehmen im Mai 2024. Es wird erwartet, dass die Transaktion das Nettoergebnis, das den Stammaktionären zur Verfügung steht, um jährlich 8,9 Millionen Dollar erhöht, was zu den positiven Auswirkungen von 22 Millionen Dollar aus den Transaktionen im Mai 2024 hinzukommt. Das bereinigte Ergebnis je Aktie des Unternehmens für das dritte Quartal 2024 wäre 0,10 Dollar statt der berichteten 0,07 Dollar gewesen, wenn die Transaktion früher stattgefunden hätte.
- Complete redemption of preferred stock simplifies capital structure
- Expected $8.9 million annual increase in net income available to common shareholders
- Additional $22 million positive impact to net income from May 2024 transactions
- Potential EPS improvement from $0.07 to $0.10 based on Q3 2024 figures
- Successfully secured $115 million term loan increase
- Increased debt load with new $115 million term loan
- Additional interest expense from new debt financing
Insights
A significant financial restructuring that strengthens Priority's balance sheet and improves profitability metrics. The
The projected EPS improvement from
The successful execution and favorable lender response indicate strong market confidence in Priority's business trajectory and credit profile. This restructuring positions the company for improved financial flexibility and enhanced shareholder returns.
The redemption of the remaining preferred stock follows Priority’s establishment of a new
“Given continued positive momentum in our business since the May 2024 refinancing, we were pleased to benefit from our strong growth to further optimize our balance sheet while lowering our cost of capital,” said Priority Chief Financial Officer Tim O’Leary. “For ease of comparison of the positive impact of the redemption, if this transaction had occurred at the beginning of Q3 2024, our earnings per share on an adjusted basis would have been
A reconciliation of the adjusted Q3 2024 earnings per share compared to the actual Q3 2024 earnings per share is provided in Exhibit A.
About Priority
Priority is the payments and banking solution that enables businesses to collect, store, lend and send funds through a unified commerce engine. Our platform combines payables, merchant services, and banking and treasury solutions so leaders can streamline financial operations efficiently — and our innovative industry experts help businesses navigate and build momentum on the path to growth. With the Priority Commerce Engine, leaders can accelerate cash flow, optimize working capital, reduce unnecessary costs, and unlock new revenue opportunities. For more information, visit prioritycommerce.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services, and other statements identified by words such as "may," "will," "should," "anticipates," "believes," "expects," "plans," "future," "intends," "could," "estimate," "predict," "projects," "targeting," "potential" or "contingent," "guidance," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding our estimated net income and the positive impact on our balance sheet. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. Our actual results could differ materially, and potentially adversely, from those discussed or implied herein.
We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings, including our most recent Annual Report on Form 10-K filed with the SEC on March 12, 2024. These filings are available online at www.sec.gov or www.prioritycommerce.com.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
Exhibit A (in thousands except per share amounts) |
||||||
For three months ended September 30, 2024 |
||||||
Actual |
Adjustments |
As adjusted |
||||
Income before income taxes |
$ |
15,507 |
$ |
- |
$ |
15,507 |
Less: Additional interest expense |
|
- |
|
(2,898) |
|
(2,898) |
Adjusted income before income taxes |
|
15,507 |
|
(2,898) |
|
12,609 |
Income taxes [1] |
|
(4,899) |
|
- |
|
(4,899) |
Net income |
|
10,608 |
|
(2,898) |
|
7,710 |
Less: Dividends and accretion attributable to redeemable senior preferred stockholders |
|
(5,121) |
|
5,121 |
|
- |
Net income attributable to common stockholders |
$ |
5,487 |
$ |
2,223 |
$ |
7,710 |
Earnings per share |
||||||
Basic |
$ |
0.07 |
$ |
0.03 |
$ |
0.10 |
Diluted |
$ |
0.07 |
$ |
0.03 |
$ |
0.10 |
Weighted average common shares outstanding |
||||||
Basic |
|
77,973 |
|
77,973 |
|
77,973 |
Diluted |
|
80,095 |
|
80,095 |
|
80,095 |
[1] Tax benefit of additional interest is not available due to 163(j) limitations. |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120428447/en/
Alison Jones, alison.jones@prth.com
Source: Priority Technology Holdings, Inc.
FAQ
How much preferred stock did Priority Technology Holdings (PRTH) redeem in its latest transaction?
What is the expected annual increase in net income for PRTH from the latest preferred stock redemption?
How did PRTH fund the preferred stock redemption?
What would PRTH's Q3 2024 adjusted earnings per share have been if the redemption occurred earlier?
