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ALPHARETTA, Ga. - Priority Technology Holdings, Inc. (NASDAQ:PRTH), a payment technology company with a market capitalization of $652 million and annual revenue of $899 million, announced Tuesday that it is launching an effort to issue new senior credit facilities totaling $1.07 billion, consisting of a $70 million revolving credit facility and a $1.0 billion term loan.
The new facilities will extend the maturity to five years for the revolving credit facility and seven years for the term loan. According to the company’s statement, proceeds will be used to refinance existing debt of $935.5 million, partially finance a prospective acquisition, settle contingent consideration related to its prior Plastiq acquisition, and pay transaction fees. The company maintains a current ratio of 1.06, indicating adequate liquidity to meet its short-term obligations, according to InvestingPro data.
The refinancing is expected to close in the third quarter of 2025, with further details to be provided upon finalization of terms.
Tim O’Leary, Chief Financial Officer of Priority, noted that the refinancing initiative aligns with the company’s strategy to optimize its capital structure. He cited Moody’s recent upgrade of Priority’s debt rating to ’B1’ and S&P’s positive outlook on the company’s B rating as factors in the timing decision.
Priority Technology Holdings provides payments and banking solutions through its unified commerce platform, which combines payables, merchant services, and banking and treasury solutions.
The information is based on a company press release statement and represents the announced plans for the refinancing initiative.
In other recent news, Priority Technology Holdings has reported a strong financial performance for the first quarter of 2025, with earnings per share (EPS) of $0.22, surpassing analyst expectations of $0.10. The company’s revenue increased by 9% year-over-year to $224.6 million, although it fell short of the forecasted $227.52 million. S&P Global Ratings has revised its outlook on Priority Technology Holdings to positive from stable, citing improved credit metrics driven by higher revenue and earnings. The company’s EBITDA margins improved to 19.9% for the trailing 12 months, and S&P projects a 10% revenue growth for the full year 2025. Additionally, Priority Technology Holdings has announced a $40 million share repurchase program, reflecting management’s confidence in the company’s long-term growth potential. The company continues to expand in its high-margin business-to-business and enterprise segments, with revenue growth of 12% and 22%, respectively. Priority Technology Holdings is also focusing on cloud infrastructure migration to enhance operational efficiency.
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