REPAY Announces Closing of $125 Million Revolving Credit Facility

Rhea-AI Summary

Repay Holdings Corporation (NASDAQ: RPAY) announced the successful closing of a new undrawn $125 million senior secured revolving credit facility, replacing a prior $30 million facility. This move, along with recent offerings of convertible notes and Class A common stock, strengthens REPAY's position for future acquisitions. The CEO emphasized an active M&A pipeline targeting growth opportunities in underserved payment verticals. Truist Securities arranged the facility, with Truist Bank as the administrative agent.

Positive

• Closing of a new undrawn $125 million senior secured revolving credit facility enhances financial flexibility.
• Recent offerings of convertible notes and Class A common stock bolster cash reserves for acquisitions.
• Active M&A pipeline indicates strong future growth potential in underserved markets.

Negative

• Execution risks associated with future acquisition strategies.
• Potential adverse effects from changes in the payment processing market and competitive landscape.
• Ongoing uncertainties from the COVID-19 pandemic may impact operations.

Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”) today announced the closing of a new undrawn $125 million senior secured revolving credit facility.

“We are pleased with the successful completion of this credit facility, which, in addition to the available proceeds from our concurrent offerings last month of convertible notes and Class A common stock, positions us well for our future acquisition opportunities,” said John Morris, CEO of REPAY. “Our M&A pipeline remains very active, with many high growth targets in large verticals that are underserved from a payment perspective.”

The new revolving credit facility replaces the Company’s prior senior secured facilities, which included an undrawn $30 million revolving credit facility. The Company paid off all term loans outstanding under its prior credit agreement following the closing last month of its concurrent offerings of convertible notes and Class A common stock.

Truist Securities, Inc. acted as lead arranger, and Truist Bank will serve as the administrative agent for the new revolving credit facility.

Forward-Looking Statements

This communication 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 the timing and terms of the offering and the proposed use of proceeds and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding future acquisition opportunities for REPAY. 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 uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in prior reports filed with the U.S. Securities and Exchange Commission and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the impacts of the ongoing COVID-19 coronavirus pandemic and the actions taken to control or mitigate its spread (which impacts are highly uncertain and cannot be reasonably estimated or predicted at this time); changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets; risks relating to REPAY’s relationships within the payment ecosystem; the risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any forward-looking statements and the assumptions on which those forward-looking statements are based. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005877/en/

FAQ

What is the recent financing action by Repay Holdings Corporation (RPAY)?

Repay Holdings Corporation closed a new undrawn $125 million senior secured revolving credit facility.

How much was the previous revolving credit facility for Repay Holdings Corporation?

The previous revolving credit facility was undrawn and amounted to $30 million.

What does the new credit facility mean for Repay Holdings' future acquisitions?

The new credit facility positions Repay Holdings well for future acquisition opportunities.

Who arranged the new credit facility for Repay Holdings?

Truist Securities acted as the lead arranger for the new credit facility.

What risks might Repay Holdings face after the announcement of the credit facility?

Repay Holdings may face execution risks related to acquisitions and uncertainties from the COVID-19 pandemic.