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REPAY Announces Closing of $250 Million Revolving Credit Facility

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Repay Holdings (NASDAQ: RPAY) has announced the successful closing of a $250 million senior secured revolving credit facility. This new facility replaces and expands the previous $185 million facility, remaining undrawn. John Morris, Co-founder and CEO, emphasized that the new credit facility, along with the recently completed convertible notes offering, will provide financial flexibility for continued focus on profitable growth and cash generation. Truist Securities, Inc. acted as the lead arranger, and Truist Bank will serve as the administrative agent for this facility.

Positive
  • Closing of a $250 million senior secured revolving credit facility, expanding from the prior $185 million facility.
  • The new facility remains undrawn, offering financial flexibility.
  • Company's focus on profitable growth and cash generation.
Negative
  • None.

REPAY's new $250 million revolving credit facility signals solid financial health and resourcefulness. Revolving credit facilities offer flexible borrowing options, allowing companies to draw, repay and redraw funds as needed. For investors, this means REPAY has secured a reliable source of capital that can be utilized for various strategic initiatives without immediately impacting their cash reserves.

Compared to the previous $185 million facility, this represents a significant increase, suggesting confidence from lenders in the company's ability to manage and repay debt. A revolving credit facility typically has lower interest rates than other borrowing forms, enhancing financial flexibility and enabling REPAY to seize growth opportunities quickly.

This expansion, coupled with the recent convertible notes offering, indicates a deliberate effort by REPAY to strengthen its liquidity. Enhanced liquidity can mean greater resilience during economic fluctuations and increased capability for acquisitions or other investments aimed at expansion.

Short-term, the credit facility provides a financial cushion that can be tapped into for operational needs or sudden opportunities. Long-term, it can support strategic growth initiatives, thereby potentially boosting revenue and profitability. Investors should monitor how REPAY plans to utilize these funds to ascertain potential impacts on their returns. However, it's essential to recognize the implications of increased leverage and repayment obligations on future profitability.

Understanding the basic industry concepts, a revolving credit facility is akin to a credit card for businesses but with typically much larger amounts and lower interest rates. It’s a financial tool used by companies to manage liquidity efficiently.

For a company like REPAY, which operates in the competitive payment processing industry, access to capital is important for sustaining growth and innovation. The expanded revolving credit facility indicates that REPAY is not only maintaining but also enhancing its financial foundation. This move can be viewed as a strategic positioning to capture more market share and fortify its competitive edge.

Payment processing is a rapidly evolving sector with constant technological advancements and regulatory changes. The additional liquidity offers REPAY the ability to invest in new technologies, streamline operations and perhaps more importantly, pursue strategic acquisitions. Acquisitions can be particularly impactful as they can provide immediate scale and new customer bases, which are significant growth drivers.

This additional credit line also reflects positively on REPAY's relationship with financial institutions. Strong banking relationships can be an indicator of a company's financial stability and operational soundness.

Short-term, the facility is a buffer that can protect against market volatility. For the long-term, it’s a tool for strategic growth, suggesting that REPAY is positioning itself for sustained competitive advantage. Investors should watch for announcements on how these funds will be allocated, which could give clues about future growth trajectories and market positioning.

ATLANTA--(BUSINESS WIRE)-- Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY” or the “Company”), a leading provider of integrated payment processing solutions, today announced the closing of an undrawn $250 million senior secured revolving credit facility. The revolving credit facility renews and expands the Company’s prior undrawn $185 million senior secured revolving credit facility.

John Morris, Co-founder and CEO of REPAY, said, “We are pleased to successfully extend and upsize our revolving credit facility, which in addition to our recently completed convertible notes offering, is intended to provide REPAY with financial flexibility to continue focusing on profitable growth and cash generation.”

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

About Repay

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for clients, while enhancing the overall experience for consumers and businesses.

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 future performance 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. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond REPAY’s control, including, without limitation, the factors described in REPAY’s reports filed with the SEC. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

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.

Investor Relations Contact for REPAY:

ir@repay.com



Media Relations Contact for REPAY:

Kristen Hoyman

khoyman@repay.com

Source: REPAY

FAQ

What is the amount of the new revolving credit facility announced by REPAY?

REPAY announced a new $250 million senior secured revolving credit facility.

How does the new credit facility compare to the previous one?

The new credit facility expands the previous $185 million facility to $250 million.

What is the stock symbol for Repay Holdings ?

The stock symbol for Repay Holdings is RPAY.

Who acted as the lead arranger for the new credit facility for REPAY?

Truist Securities, Inc. acted as the lead arranger for REPAY's new credit facility.

What is the purpose of REPAY's new revolving credit facility?

The new facility is intended to provide financial flexibility for profitable growth and cash generation.

Repay Holdings Corporation

NASDAQ:RPAY

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