Priority Technology Holdings Term Loan Facilities Amendments
Mon Mar 1, 2021 8:51 pm Covenants Analysis  Financial Restructuring

Priority Technology Holdings Inc., an integrated payment software and commercial payment services provider based out of Alpharetta, GA, began to amend their senior term loan and subordinated term loan facilities in mid-March of 2020, but these amendments may hold back the company’s ability to grow through continued acquisitions. Their two owed term loan facilities are under separate credit agreements with multiple borrowers and guarantors including Pipeline Cynergy Holdings LLC, Institutional Partner Services LLC, Payment Systems Holdings LLC and Priority Holdings LLC. Priority Technology Holdings Inc. has previously been able to grow through acquisitions of whole companies and merchant portfolios, but with the amendments made in March 2020 the company now has limited covenant relief.

The amendments to their credit agreements made a few notable changes to their pricing / PIK premium, amortization of senior term loans, renewed call protection, restrictions on transfers of material intellectual property, removal of leverage-based baskets for stock buybacks and leverage-based conditions for accessing transaction baskets. Our Americas Covenants team broke down these amendments and came to a few covenant conclusions about Priority Technology Holdings’ liquidity and financial covenants, their debt and liens and the company’s dividends and transfers to unrestricted subsidiaries. Read our full analysis of the situation here:   

Share this post:
Thank you for signing up
for Reorg on the Record!