Priority Technology Holdings, Inc. has announced the launch of new senior credit facilities, including a $70 million revolving credit facility and a $1.0 billion term loan. The new facilities will have extended maturities of 5 years for the revolving credit facility and 7 years for the term loan.
These new credit facilities will be used to refinance existing debt of $935.5 million and partially finance a prospective tuck-in acquisition. Additionally, the funds will be used to settle certain contingent consideration related to the company’s previous acquisition of Plastiq and pay transaction fees and expenses.
The company's CFO, Tim O’Leary, stated that the refinancing initiative aligns with their ongoing strategy to optimize their capital structure and is supported by favorable debt market conditions, as evidenced by Moody's recent upgrade of Priority's debt rating to 'B1' and S&P's positive outlook on Priority’s B rating.
The new senior credit facilities and related transactions are expected to close in the third quarter of 2025, with more details to be provided at that time based on final terms.
This announcement comes as Priority continues to strengthen its position in the payments and banking solutions space, aiming to streamline financial operations and unlock new revenue opportunities for businesses. Following these announcements, the company's shares moved -2.95%, and are now trading at a price of $8.23. For the full picture, make sure to review Priority Technology's 8-K report.
