Priority Technology Holdings, Inc. announced on July 8, 2025, the launch of an effort to issue new senior credit facilities. These facilities include a $70 million revolving credit facility with a new 5-year maturity and a $1.0 billion term loan with a new 7-year maturity. This initiative aims to optimize the company's capital structure.
The proceeds from these new facilities will be used to refinance $935.5 million of existing debt. They will also partially finance a prospective tuck-in acquisition and settle certain contingent consideration related to the prior acquisition of Plastiq. Transaction fees and expenses will also be covered.
CFO Tim O’Leary noted that this refinancing aligns with the company's strategy to optimize its capital structure, supported by favorable debt market conditions. Moody's recent upgrade of Priority's debt rating to 'B1' and S&P's positive outlook on its B rating support this financing effort. The new facilities and related transactions are expected to close in the third quarter of 2025.
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