International Money Express (Intermex), one of the nation’s omnichannel money transfer services to Latin America, entered into a first amendment agreement to its amended and restated credit agreement, dated as of June 24, 2021, with KeyBank as administrative agent, and the other lenders from time to time party to the credit agreement.

The Amendment generally updates the credit agreement to replace LIBOR as a benchmark interest rate for loans with the secured overnight financing rate as administered by the Federal Reserve Bank of New York.

The amendment also provides the company with increased flexibility to make certain restricted payments, including the repurchase shares of its common stock, without limitation so long as the Consolidated Leverage Ratio, as of the then most recently completed four fiscal quarters of the company, after giving pro forma effect to such restricted payments, is 2.25 to 1.00 or less. In addition, the company may make restricted payments that do not exceed, in the aggregate during any fiscal year, the greater of $23,750,000 and 25% of Consolidated EBITDA (as defined in the credit agreement) for the then most recently completed four fiscal quarters of the company.

“This amendment to our Credit Agreement significantly increases our financial flexibility to resume the execution of our previously announced stock repurchase program, as market conditions and other factors warrant, as well as, completing the transition away from LIBOR,” Andras Bende, CFO of Intermex, said. “We very much appreciate the support of our lending group and we believe that this demonstrates another step in the growth and increased financial strength of Intermex.”

Interest on the term loan and revolving loans under the credit agreement may, at the company’s election from time to time, be determined by reference to SOFR plus an index adjustment of 0.10% and an applicable margin ranging between 2.50% and 3.00% based upon the company’s consolidated leverage ratio, as calculated pursuant to the terms of the credit agreement. Loans (other than term loans), may also bear interest at the base rate, the definition of which has also been revised.

Except as amended by the amendment, the credit agreement remains in full force and effect.