Priority Technology Holdings Completes Successful Debt Refinance, Boosting Free Cash Flow by Over $5.5 Million

Priority Technology Holdings, Inc. (NASDAQ: PRTH) recently announced the successful completion of its debt refinance, which involved paying off approximately $170 million of preferred equity and reducing the cost of outstanding debt by 100 basis points.

The refinancing saw Priority issue a new $835 million term loan and establish a new $70 million revolving line of credit. The proceeds from this loan were used to refinance and reprice its existing $653 million term loan due April 2027, as well as redeem about $170 million of preferred equity, leaving $110 million of preferred equity outstanding. This refinance was completed through a new credit agreement.

As a result of this transaction, PRTH expects to have a net leverage ratio of roughly 4.5x. Tim O’Leary, Chief Financial Officer of Priority, expressed satisfaction with the positive response from both existing and new lenders involved in the refinancing. 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.

O’Leary also highlighted that the refinancing and preferred equity redemption are projected to increase free cash flow by over $5.5 million and boost net income available to common shareholders by nearly $20 million on an annualized basis. The new debt agreement provides the flexibility for Priority to pursue its Unified Commerce vision with the goal of delivering strong shareholder value.

For more information on this topic, please see the source version on businesswire.com or contact Alison Jones at [alison.jones@prth](mailto:alison.jones@prth).