SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
EVERTEC, Inc. (NYSE:EVTC) (“Evertec” or the “Company”) announced that
the Company successfully refinanced its existing credit facilities on
November 27, 2018. The new $670 million of total credit facilities
consist of a $125 million 5-year revolving credit facility along with a
$220 million 5-year term loan A and a $325 million 6-year term loan B.
Joaquin Castrillo, Chief Financial Officer stated, “We are pleased to
have completed the refinancing of our credit facilities. The upsized
revolver will provide additional financial flexibility as we continue to
execute on our growth strategy in Latin America."
Proceeds from the new loans, a $10 million draw on the revolving credit
facility, along with $15 million of cash on the balance sheet, were used
to repay the Company’s existing term debt ($191 million and $379 million
of former term loan A and B, respectively).
The interest rate improved 25 basis points to LIBOR+225 for both the
term loan A and the revolving credit facility, based on Evertec’s
resulting consolidated leverage. The term loan B increased 100 basis
points to LIBOR+350. Evertec anticipates approximately $0.02 to $0.03
impact on adjusted earnings per share in 2019 due to increased interest
expense resulting from the refinancing and excluding any impact from
hedging activities.
About Evertec
EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction
processing business in Latin America, providing a broad range of
merchant acquiring, payment processing and business solutions services.
The Company manages a system of electronic payment networks that process
more than two billion transactions annually and offers a comprehensive
suite of services for core bank processing, cash processing and
technology outsourcing. In addition, Evertec owns and operates the ATH®
network, one of the leading personal identification number (“PIN”) debit
networks in Latin America. Based in Puerto Rico, the Company operates in
26 Latin American countries and serves a diversified customer base of
leading financial institutions, merchants, corporations and government
agencies with “mission-critical” technology solutions. For more
information, visit www.evertecinc.com.
Forward-Looking Statement
Certain statements in this press release constitute “forward-looking
statements” within the meaning of, and subject to the protection of, the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties, and other
factors that may cause the actual results, performance or achievements
of EVERTEC to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Statements preceded by, followed by, or that otherwise
include the words “believes,” “expects,” “anticipates,” “intends,”
“projects,” “estimates,” and “plans” and similar expressions of future
or conditional verbs such as “will,” “should,” “would,” “may,” and
“could” are generally forward-looking in nature and not historical
facts. Any statements that refer to expectations or other
characterizations of future events, circumstances or results are
forward-looking statements.
Various factors that could cause actual future results and other future
events to differ materially from those estimated by management include,
but are not limited to: our reliance on our relationship with Popular
for a significant portion of our revenues pursuant to our master
services agreement with them, and our reliance on Banco Popular, to grow
our merchant acquiring business; as a regulated institution, we most
likely will be required to obtain regulatory approval before engaging in
certain new activities or businesses, whether organically or by
acquisition, and may be unable to obtain such approval on a timely basis
or at all, which may make transactions more expensive or impossible to
complete, or make us less attractive to potential sellers; our ability
to renew our client contracts on terms favorable to us, including our
contract with Popular; our dependence on our processing systems,
technology infrastructure, security systems and fraudulent payment
detection systems, as well as on our personnel and certain third parties
with whom we do business, and the risks to our business if our systems
are hacked or otherwise compromised; our ability to develop, install and
adopt new software, technology and computing systems; a decreased client
base due to consolidations and failures in the financial services
industry; the credit risk of our merchant clients, for which we may also
be liable; the continuing market position of the ATH network; a
reduction in consumer confidence, whether as a result of a global
economic downturn or otherwise, which leads to a decrease in consumer
spending; our dependence on credit card associations, including any
adverse changes in credit card association or network rules or fees;
changes in the regulatory environment and changes in international,
legal, tax, political, administrative or economic conditions; the
geographical concentration of our business in Puerto Rico, including our
business with the government of Puerto Rico and its instrumentalities,
which are facing severe fiscal challenges; additional adverse changes in
the general economic conditions in Puerto Rico, whether as a result of
the government’s debt crisis or otherwise, including the continued
migration of Puerto Ricans to the U.S. mainland, which could negatively
affect our customer base, general consumer spending, our cost of
operations and our ability to hire and retain qualified employees; the
risks in connection with operating an international business in Latin
America and the Caribbean, in jurisdictions with potential political and
economic instability; our ability to execute our geographic expansion
and acquisition strategies, including challenges in successfully
acquiring new businesses and integrating and growing acquired
businesses; our ability to protect our intellectual property rights
against infringement and to defend ourselves against claims of
infringement brought by third parties; our ability to recruit and retain
the qualified personnel necessary to operate our business; our ability
to comply with U.S. federal, state, local and foreign regulatory
requirements; evolving industry standards and adverse changes in global
economic, political and other conditions; our high level of indebtedness
and restrictions contained in our debt agreements, including the senior
secured credit facilities, as well as debt that could be incurred in the
future; our ability to prevent a cybersecurity attack or breach in our
information security; our ability to generate sufficient cash to service
our indebtedness and to generate future profits; our ability to
refinance our debt; the possibility that we could lose our preferential
tax rate in Puerto Rico; the risk that the counterparty to our interest
rate swap agreement fails to satisfy its obligations under the
agreement; uncertainty of the pending debt restructuring process under
Title III of the Puerto Rico Oversight, Management and Economic
Stability Act (“PROMESA”), as well as actions taken by the Puerto Rico
government or by the PROMESA Board to address the Puerto Rico fiscal
crisis; uncertainty related to Hurricanes Irma and Maria and their
aftermaths’ impact on the economies of Puerto Rico and the Caribbean;
the possibility of future catastrophic hurricanes affecting Puerto Rico
and/or the Caribbean, as well as other potential natural disasters; and
the nature, timing and amount of any restatement.
Consideration should be given to the areas of risk described above, as
well as those risks set forth under the headings “Forward-Looking
Statements” and “Risk Factors” in the reports the Company files with the
SEC from time to time, in connection with considering any
forward-looking statements that may be made by the Company and its
businesses generally. We undertake no obligation to release publicly any
revisions to any forward-looking statements, to report events or to
report the occurrence of unanticipated events unless we are required to
do so by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181128005109/en/
Investors
Kay Sharpton
(787) 773-5442
IR@evertecinc.com
Source: EVERTEC, Inc.