AUS
NZ
UK
CA
USA
IND
Shift4 Payments, Inc. (NYSE:FOUR), a prominent player in integrated payments and commerce technology, has announced the successful refinancing of its existing revolving credit facility. The refinancing, completed on September 5, 2024, involves a new $450 million senior secured revolving credit facility for its wholly-owned subsidiary, Shift4 Payments, LLC (“Shift4 LLC”). This facility is structured under a second amended and restated first lien credit agreement with Goldman Sachs Bank USA, serving as the administrative and collateral agent, alongside other participating lenders and issuing banks.
The newly established Revolving Credit Facility replaces Shift4 LLC’s previous credit arrangement, which was initially entered into on January 29, 2021, with UBS AG, Cayman Islands Branch. The earlier agreement, which had been amended over time, was succeeded by this latest facility to better align with the company's growth and financial strategies.
Nancy Disman, Chief Financial Officer of Shift4 Payments, Inc., expressed satisfaction with the outcome of the refinancing. “We are pleased with the flexibility that this increased credit facility affords us as we continue to grow around the world,” she said. “We thank each of the institutions involved for their commitment and confidence in Shift4.”
The terms of the new Revolving Credit Facility offer Shift4 LLC considerable financial flexibility. Borrowings under the facility are priced based on either a term SOFR-based rate or an alternate base rate, with specific margins applied. The term SOFR rate has a 0.0% floor and includes an applicable margin of 2.00%, while the alternate base rate includes an applicable margin of 1.00%. The facility’s interest rate options are designed to provide cost-effective financing aligned with market conditions. The facility is set to mature on September 5, 2029.
At the time of closing, the Revolving Credit Facility was undrawn, indicating that Shift4 LLC has not yet utilized the funds available under this agreement. This strategic move positions the company with a robust financial cushion, facilitating future growth initiatives and operational needs.
Overall, this refinancing underscores Shift4 Payments’ proactive approach to managing its capital structure and enhancing its financial flexibility, reinforcing its capacity to support ongoing expansion and innovation in the dynamic payments and commerce technology sector.
