Remitly Boosts Liquidity With New $550M JPMorgan-Led Credit Deal

Rhea-AI Filing Summary

Remitly Global (NASDAQ:RELY) filed an 8-K announcing a new $550 million secured revolving credit facility with JPMorgan and other lenders, replacing its prior $325 million line. The five-year facility is guaranteed by certain subsidiaries and secured by a first-priority lien on substantially all assets. Borrowings may accrue interest at Term SOFR, Daily Simple SOFR or an alternate base rate. Key covenant: total net leverage ≤ 4.5× at each quarter-end. Proceeds will prefund customer remittance flows and support general corporate needs. The prior facility was terminated with no outstanding balance. The disclosure also triggers Item 2.03, reflecting a direct financial obligation. Investors should monitor utilization levels, covenant compliance and any changes to cost of capital.

Positive

• New $550 million secured revolving credit facility increases borrowing capacity by ~69 % versus the prior $325 million line, strengthening liquidity.

Negative

• Facility is secured by first-priority lien on substantially all assets, and a 4.5× net-leverage covenant could restrict financial flexibility in weaker periods.

Insights

Capital Markets Analyst

TL;DR: 69 % larger revolver materially enhances liquidity.

The $550 million secured revolver lifts available credit by $225 million, giving Remitly ample headroom to prefund high-velocity remittance flows without immediate equity dilution. Undrawn at signing, the facility is a call option on liquidity priced off SOFR, likely mid-200 bps all-in, consistent with fintech peers. The first-lien structure and broad subsidiary guarantees reduce lender risk, enabling size uplift. Liquidity coverage improves, refinancing risk falls and working-capital flexibility increases—particularly valuable amid volatile FX corridors. Provided Remitly remains below the 4.5× net-leverage ceiling, the agreement should be accretive to operational resilience.

Risk Analyst

TL;DR: Added cushion but tighter covenants and collateral.

While the larger revolver bolsters short-term liquidity, it introduces secured claims on nearly all assets and embeds a leverage covenant that could bind during downturns. Should transaction volumes soften or customer prefunding spikes unexpectedly, borrowing could accelerate, pressuring the 4.5× threshold. Breach risks include higher pricing, forced deleveraging, or equity raise. Investors must weigh the flexibility gains against potential constraints on future strategic financing and the subordination of unsecured creditors.

8-K Event Classification

4 items: 1.01, 1.02, 2.03, 9.01

4 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 1.02 Termination of a Material Definitive Agreement Business

A significant contract was terminated, which may affect business operations or revenue.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): June 24, 2025

REMITLY GLOBAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		001-40822		88-2301143
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

401 Union Street, Suite 1000

Seattle, WA 98101

(Address of Principal Executive Offices) (Zip Code) 

(888) 736-4859

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		RELY		NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry Into a Material Definitive Agreement

On June 24, 2025, Remitly Global, Inc. (“Remitly Global”) entered into a Credit Agreement (the “Credit Agreement”), among Remitly Global, Remitly, Inc. (“Remitly, Inc.” and, together with Remitly Global, collectively referred to as “Remitly”), the financial institutions party thereto (the “Lenders”), and JPMorgan Chase Bank, N.A., as issuing bank, administrative agent, and collateral agent (the “Agent”). The Credit Agreement replaced Remitly’s prior five-year $325,000,000 Credit Agreement dated as of September 13, 2021 (as amended, the “Prior Credit Agreement”), among Remitly, the financial institutions party thereto, and the Agent. The Credit Agreement provides for a $550,000,000 secured revolving credit facility (the “Facility”).

Remitly anticipates using the proceeds from the Facility primarily to support prefunding of customer flows within Remitly’s global remittance business and also for general corporate purposes.

The Facility is guaranteed by certain of Remitly Global’s wholly-owned subsidiaries (together with Remitly, the “Loan Parties”) and secured by a first priority lien on substantially all of the Loan Parties’ assets. Interest is based on either (i) the Term SOFR rate, (ii) the Daily Simple SOFR rate, or (iii) the alternate base rate, each as defined and described in the Credit Agreement with respect to the applicable type of borrowing.

The Credit Agreement contains customary representations and warranties as well as customary affirmative and negative covenants and events of default. Negative covenants include, among others, a requirement that the total net leverage ratio (as defined in the Credit Agreement) as of the end of any fiscal quarter is not greater than 4.50 to 1.00.

The description above is a summary and is qualified in its entirety by the Credit Agreement, which is filed as Exhibit 10.1 to this report and is incorporated herein by reference.

Item 1.02 Termination of a Material Definitive Agreement

In connection with its entry into the Credit Agreement, on June 24, 2025, Remitly terminated the Prior Credit Agreement. No borrowings were outstanding at the termination of the Prior Credit Agreement.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

Please see Item 1.01 above, which information is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
10.1#	Credit Agreement dated as of June 24, 2025, among Remitly Global, Inc., Remitly, Inc., the financial institutions party thereto, and JPMorgan Chase Bank, N.A., as administrative agent.
104	Cover page interactive data file (embedded with the inline XBRL document)

# Certain identified information has been excluded from this exhibit because the Registrant does not believe it is material and is the type that the Registrant customarily treats as private and confidential. Redacted information is indicated by “[*****]”.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Remitly Global, Inc.
Date: June 27, 2025	By:	/s/ Vikas Mehta
		Vikas Mehta
		Chief Financial Officer

FAQ

How large is Remitly (RELY)’s new credit facility disclosed on June 24 2025?

The company entered into a $550 million secured revolving credit facility.

What interest benchmarks apply to RELY’s new revolving credit line?

Borrowings may be based on Term SOFR, Daily Simple SOFR, or an alternate base rate, as defined in the agreement.

How does the new facility compare to Remitly’s prior credit agreement?

It replaces the $325 million 2021 facility, increasing available capacity by $225 million (around 69 %).

What will Remitly use the $550 million facility for?

Management plans to prefund customer remittance flows globally and support general corporate purposes.

Are there leverage covenants in the new credit agreement?

Yes. Total net leverage must not exceed 4.5 to 1.0 at each fiscal quarter-end.

Were any borrowings outstanding when the prior facility was terminated?

No. The company reported zero outstanding borrowings at termination.