Priority Technology Announces Completion of Debt Refinancing and Preferred Equity Issuance

StartUp City | Tuesday, May 04, 2021

A $290 million committed delayed draw term loan is in place and will be utilized to fund a portion of the Finxera transaction when it closes later this year. In addition, a new $40 million revolving credit facility is now open.

FREMONT, CA: Priority Technology, a leading payments technology company, has declared the completion of its debt refinancing and preferred equity issuance.

The new senior debt facility offers a $300 million initial term loan to refinance existing debt and fund debt placement fees and expenses. A $290 million committed delayed draw term loan is in place and will be utilized to fund a portion of the Finxera transaction when it closes later this year. In addition, a new $40 million revolving credit facility is now open.

"The combination of these financings positions us for accelerated growth as we continue to strengthen our payments and banking as a service technology platform to be the market leading consolidator of SMB and ISV payment solutions," stated Tom Priore, Chairman and Chief Executive Officer of Priority. "With our leverage below 4 times EBITDA post-transaction and meaningfully improving free cash flow, we have the full financial flexibility to thoughtfully pursue our organic and inorganic growth initiatives."

"We see significant growth potential for Priority given the company's significant momentum and scalable platform with recurring revenue streams," stated Joel Holsinger, Co-Head of the Alternative Credit group of Ares Management Corporation. "We look forward to working closely with the outstanding Priority team to position the company for long-term growth and success."

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