Repay Holdings Amends Credit Agreement with Stricter Debt Terms, Shorter Maturity

summarizeSummary

Repay Holdings amended its credit agreement, shortening its term loan maturity, increasing liquidity requirements, and tightening financial covenants, indicating less favorable debt terms.

check_boxKey Events · Financing and Capital Events · RPAY

• Term Loan Maturity Shortened

  The stated maturity of the term loan facility was reduced by one year, from June 1, 2033, to June 1, 2032.

• Increased Liquidity Threshold for Springing Maturity

  The liquidity requirement to avoid springing maturity for the 2029 Convertible Notes was raised from $15 million to $35 million.

• Stricter Excess Cash Flow Prepayments

  Mandatory prepayments of excess cash flow will now be triggered at lower First Lien Net Leverage Ratios (e.g., 50% at 1.90:1.00, down from 2.65:1.00).

• Higher Interest Rate Floor

  The interest rate floor for loans was increased from 0% to 1%, potentially raising borrowing costs.

auto_awesomeAnalysis · RPAY · Trade & Services

This 8-K details an amendment to Repay Holdings' credit agreement, introducing significantly stricter terms for its $500 million term loan facility. Key changes include a one-year reduction in the term loan's maturity, an increased liquidity threshold for convertible notes to avoid springing maturity, and a higher interest rate floor. The amendment also tightens financial covenants by accelerating mandatory prepayments of excess cash flow at lower leverage ratios and reducing the company's capacity for future debt under its fixed incremental basket. These revisions reflect a less favorable financing environment and will impact the company's financial flexibility and cost of capital.