EverCommerce Successfully Reprices Credit Agreement

Rhea-AI Summary

EverCommerce (NASDAQ: EVCM) has successfully repriced its $533.5 million term loan, reducing the fixed component of the interest rate from SOFR plus 3.0% to SOFR plus 2.50%. The company eliminated the credit spread adjustment, resulting in approximately $3.3 million in annualized interest cost savings on the outstanding principal as of September 30, 2024. This modification is part of EverCommerce's ongoing transformation and optimization efforts. The company had previously implemented interest rate swaps with a combined notional amount of $425 million to reduce floating rate exposure. No other material amendments were made to the term loan credit facility.

Positive

• Achieved $3.3 million in annual interest cost savings
• Successfully reduced loan interest rate by 50 basis points
• Eliminated credit spread adjustment
• Maintained $425 million in interest rate swaps protection

Negative

• Maintains substantial debt load of $533.5 million

News Market Reaction

-1.56%

1 alert

-1.56% News Effect

On the day this news was published, EVCM declined 1.56%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DENVER, Dec. 16, 2024 (GLOBE NEWSWIRE) -- EverCommerce (NASDAQ: EVCM), a leading provider of SaaS solutions for service SMBs, announced today that it successfully repriced the fixed rate component of its $533.5 million term loan as part of its continued transformation and optimization efforts. The term loan was repriced at par and will bear an interest rate of SOFR plus 2.50%.

The repricing reduced the fixed component of the interest rate determination by 50 basis points (from SOFR plus 3.0%) and eliminated the credit spread adjustment, resulting in an annualized interest cost savings of approximately $3.3 million on the outstanding principal amount as of September 30, 2024. There were no other material amendments to the term loan credit facility other than the repricing.

EverCommerce previously announced the execution of a series of interest rate swaps with a combined notional amount of $425 million, effectively reducing the company’s floating rate exposure.

Investor Contact: 
Brad Korch 
SVP and Head of Investor Relations 
720-796-7664 
ir@evercommerce.com

Press Contact: 
Jeanne Trogan 
VP of Corporate Communications 
512-705-1293 
press@evercommerce.com

About EverCommerce 

EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 690,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding anticipated annual interest cost savings. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, we may need to incur additional indebtedness or seek capital through new equity or debt financings in order to support the growth of our business as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

FAQ

How much will EVCM save annually from the December 2024 loan repricing?

EverCommerce will save approximately $3.3 million annually in interest costs from the loan repricing announced in December 2024.

What is the new interest rate for EVCM's term loan after December 2024 repricing?

After the December 2024 repricing, EverCommerce's term loan bears an interest rate of SOFR plus 2.50%, reduced from SOFR plus 3.0%.

What is the total value of EVCM's term loan that was repriced?

EverCommerce repriced a term loan valued at $533.5 million.

How much of EVCM's floating rate exposure is protected by interest rate swaps?

EverCommerce has interest rate swaps with a combined notional amount of $425 million to reduce floating rate exposure.