International Money Express (Intermex), an omni-channel money remittance company, refinanced its existing secured debt through the establishment of a new $425 million revolving credit facility. According to a related 8-K filing, KeyBank served as administrative agent on the transaction.
The new credit agreement provides for U.S. dollar, euro and pound sterling revolving loans and creates an uncommitted incremental credit facility that may be used for additional term or revolving loans of up to $100 million in the aggregate.
The new revolving credit facility, maturing in 2029, bears an interest rate equal to SOFR plus 175 to 225 basis points based on the company’s total leverage ratio. The new agreement represents a $133 million increase in credit availability at improved spreads over SOFR. The covenants under the new revolving facility also provide the company with increased operational flexibility, including expanded capacity for share repurchases and merger and acquisition activity. Intermex has utilized a portion of the new facility to repay its existing $72 million term loan and to pay the costs associated with establishing the new revolving credit facility.
“Securing this facility underscores the confidence the debt capital market has in Intermex and our omnichannel strategy to serve the $156 billion Latin America market and beyond,” Andras Bende, chief financial officer of Intermex, said. “This new, improved credit facility provides more efficient and flexible financing to support our needs, allowing us to optimize our balance sheet during our next phase of growth.”
In addition, the Intermex board of directors has approved an added authorization for the company’s share repurchase program. This increase brings the total current authorization to $100 million, up from $39.4 million remaining at the end of Q2/24. Under this authorization, the board has approved share repurchases of up to $20 million in Q3/24 and Q4/24.
“Based on our continued strong performance and the confidence we have in the future of our omnichannel strategy, the board of directors and management team believes that repurchasing the company’s common stock is an attractive investment opportunity and prudent use of our capital at this time,” Bob Lisy, chairman of the board, CEO and president of Intermex, said. “Our strong liquidity position will enable us to return value to shareholders through stock repurchases while we continue to develop new products and services, investing in the company’s future.”
