Priority Technology Holdings, Inc. (NASDAQ: PRTH), a provider of payments and banking solutions, has successfully closed $1.1 billion in new senior credit facilities, aiming to refinance existing debt, satisfy obligations from its 2023 acquisition of Plastiq, and support strategic growth initiatives.
The new financing package includes a $1 billion term loan with a 7-year maturity and a $100 million revolving credit facility with a 5-year maturity. This transaction facilitates the refinancing of existing debt, addresses outstanding obligations related to the 2023 acquisition of Plastiq, and is earmarked for strategic growth initiatives and general corporate purposes.
Through this refinancing, Priority has lowered the interest rate on its term loan by 100 basis points compared to its previous debt, while also extending the term loan maturity to 2032.
Tim O’Leary, Chief Financial Officer of Priority, stated, “This significant refinancing strengthens our balance sheet, improves our cash flow and provides Priority with enhanced financial flexibility to execute our growth strategy. The successful issuance of these credit facilities on favorable terms demonstrates the capital market’s confidence in our business model and growth trajectory. We appreciate the strong support of both existing and new investors in this financing and look forward to continuing our focus on execution.”
Priority offers a payments and banking solution designed to enable businesses to collect, store, lend, and send funds via a unified commerce engine. The company’s platform integrates payables, merchant services, and banking and treasury solutions, aiming to streamline financial operations and accelerate cash flow, optimize working capital, and reduce costs.
