EVO Payments, a payment service provider operating throughout North America and Europe, amended its senior secured credit facility with SunTrust as administrative agent.
According to a related 8-K filing, Citibank served as lead arranger for the financing.
Under the terms of the amended agreement, the company reduced the interest rate spread on its first lien term loan by 75 basis points. The agreement also will provide for a further 25 basis point reduction when the company receives an upgrade to its credit rating.
Additionally, the amendment increased the company’s revolving credit facility to $200 million and reduced its interest rate spread by 100 basis points (subject to adjustment based on an amended leverage-based pricing grid). Following the May 2018 public offering of EVO Payments, EVO repaid its $175 million second lien term loan and the remaining balance of the deferred purchase price from its acquisition of Sterling Payment Technologies.
“We are excited to announce the successful refinancing of our existing credit facility,” said Kevin Hodges, executive vice president and CFO of EVO Payments. “With the payoff of certain indebtedness and the subsequent repricing of our senior secured credit facility, we have lowered our annual interest expense by approximately $25 million.”
EVO offers an array of secure payment solutions to merchants ranging from micro-enterprises to multinational companies and organizations across North America and Europe.
