Priority Technology Holdings, Inc. has announced the successful redemption in full of the remaining preferred stock on its balance sheet, using proceeds from a $115 million increase to its existing term loan due May 2031. The redemption totaled $113.3 million, including accrued but unpaid dividends of $2.6 million.
This redemption follows the company's establishment of a new $835 million term loan and concurrent redemption of approximately $170 million of preferred stock in May 2024. As a result of these financing and preferred stock redemption activities, net income available to common shareholders is expected to increase by an estimated $8.9 million on an annualized basis, which is additive to approximately $22 million of positive impact to net income on an annualized basis from the May 2024 transactions.
Tim O’Leary, Chief Financial Officer, noted that since the May 2024 refinancing, the company has experienced continued positive momentum in its business, and it was pleased to benefit from its strong growth to further optimize the balance sheet while lowering the cost of capital.
O’Leary also commented on the positive impact of the redemption, stating that if the transaction had occurred at the beginning of Q3 2024, the earnings per share on an adjusted basis would have been $0.10, compared to the earnings per share of $0.07 reported on the Q3 2024 earnings call.
Following these announcements, the company's shares moved -2.3%, and are now trading at a price of $8.36. If you want to know more, read the company's complete 8-K report here.
