Priority Technology Holdings, Inc. (NASDAQ: PRTH) witnessed a substantial increase of 21.51% in its stock value, trading at $4.18 during Thursday’s session. This impressive rise in the market value of PRTH stock is attributed directly to a significant equity movement.
Effective Refinancing Of Debt
The debt restructuring program of Priority Technology (PRTH) has been successfully concluded, with the return of about $170 million in preferred shares. By taking this action, the company’s cost of outstanding debt is effectively reduced by 100 basis points. As part of the transaction, Priority Technology secured a new $835 million term loan and established a new $70 million revolving line of credit.
The loan proceeds were utilized to refinance and reprice its existing $653 million term loan, initially due in April 2027, and to redeem around $170 million of preferred equity, leaving $110 million of preferred equity outstanding. The refinancing was executed through a new credit agreement.
Enhanced Financial Position And Strategic Flexibility
The overwhelmingly positive response from both existing and new lenders supported Priority Technology in its refinancing efforts. The company achieved a 100 basis point reduction in its borrowing rate, diversified its investor base, and extended the term loan maturity to May 2031.
The net effect of the refinancing and preferred equity redemption is projected to increase the company’s free cash flow by over $5.5 million and boost net income available to common shareholders by nearly $20 million annually. The new debt agreement also provides Priority Technology with the flexibility to continue executing its Unified Commerce vision, aiming to deliver strong shareholder value.
Sustained Growth And Innovation Focus
Priority Technology’s growth in the recently reported quarter, along with its consistent performance, underscores the unique attributes of its operating infrastructure, the diversity of its business segments, and the robust demand for its products. The company remains committed to the continued innovation of its SaaS Payments and Banking suite of services and its Accelerated Commerce Engine, striving to meet the evolving needs of its expanding portfolio of customers and enterprise partners.
