Repay Holdings amends credit facility to expand term loans, revolver

By Wendy Van Sickle

Columbus, Ohio, Feb. 10 – Repay Holdings Corp. subsidiary Hawk Parent Holdings LLC amended its July 2019 revolving credit facility and term loan agreement on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for a $46 million incremental term loan, which will be used to fund a portion of the consideration paid at closing in connection with Repay’s acquisition of CDT Technologies, Ltd. d/b/a Ventanex, and to repay existing revolving loans, and for a delayed-draw term loan of up to $60 million, which may be used to finance future acquisitions and to fund earn-out obligations incurred in connection with acquisitions.

Additionally, the amendment increased the amount of revolving loans available under the credit agreement to $30 million from $20 million.

Borrowings under each tranche bear interest at Libor plus a margin ranging from 250 basis points to 350 bps, depending on total net leverage ratio.

After 31 days, Hawk will be required to pay a commitment fee of 50 bps a year on the daily amount of the unused delayed-draw term loan, which has an availability period of nine months.

The revolver has a commitment fee ranging from 25 bps to 50 bps.

The scheduled maturity of each tranche is five years from the amendment date.

Truist Bank is the administrative agent.

SunTrust Robinson Humphrey, Inc., Regions Bank and MUFG Union Bank, NA are the joint lead arrangers and joint book runners. Regions and MUFG are the syndication agents. HSBC Bank USA, NA and Fifth Third Bank are the documentation agents.

Through its subsidiaries, Atlanta-based Repay provides financial technology and payment processing solutions such as credit and debit processing, automated clearing house processing and instant funding.

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