Priority Technology Holdings, Inc., the payments and banking solution that streamlines collecting, storing, lending and sending money to unlock revenue opportunities, today announced the successful closing of $1.1 billion in new senior credit facilities, consisting of a $1 billion term loan with a 7-year maturity and a $100 million revolving credit facility with a 5-year maturity.
The loan proceeds will be used to refinance existing debt, to satisfy outstanding obligations related to the 2023 acquisition of Plastiq, to fund strategic growth initiatives, and for general corporate purposes. As a result of the financing, the Company lowered the interest rate on the term loan by 100 basis points compared to its existing debt and extended the term loan maturity to 2032.
“This significant refinancing strengthens our balance sheet, improves our cash flow, and provides Priority with enhanced financial flexibility to execute our growth strategy,” said Tim O’Leary, Chief Financial Officer of Priority. “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.”
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