International Money Express Secures $425 Million Credit Facility
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International Money Express, Inc. Secures $425 Million Credit Facility
International Money Express, Inc. (NASDAQ: IMXI), a leading omni-channel money remittance company, has successfully completed the refinancing of its existing secured debt by establishing a new $425 million revolving credit facility. This new credit agreement facilitates loans in U.S. Dollars, Euros, and Pound Sterling while also introducing an uncommitted incremental credit line allowing for additional loans of up to $100 million.
Details of the New Credit Facility
The newly established revolving credit facility will mature in 2029 and features an interest rate tied to SOFR, with an added margin of 175 to 225 basis points derived from the Company’s total leverage ratio. This arrangement results in a significant $133 million increase in credit availability, offering improved terms compared to SOFR. Furthermore, the covenants incorporated in the new facility provide the Company with enhanced operational flexibility, enabling increased capacity for share repurchases as well as merger and acquisition pursuits.
Utilization of the Credit Facility
Intermex has allocated part of the proceeds from this new facility to repay its existing $72 million term loan and cover costs linked to establishing this revolving credit line. This strategic move underscores Intermex's focus on maintaining a robust financial footing while managing operational expenses effectively.
Board Approval for Share Repurchase Program
Additionally, the Intermex Board of Directors has authorized an increase in the Company’s share repurchase program. The total authorization has been raised to $100 million from the previously available $39.4 million at the end of the second quarter. The Board has sanctioned share repurchases of up to $20 million in each of the third and fourth quarters.
Management Statements
"The successful acquisition of this facility highlights the confidence the debt capital market has in Intermex and our omnichannel strategy, which aims to serve a $156 billion market in Latin America and beyond," expressed Andras Bende, Chief Financial Officer. "The new credit facility enhances our financing efficiency, equipping us to optimize our balance sheet as we progress into the next growth phase."
Bob Lisy, Chairman of the Board, CEO, and President, commented, "Our strong performance indicates that repurchasing stock is a sound investment opportunity and a judicious use of our capital at this stage. With our robust liquidity position, we are well-positioned to return value to shareholders while progressing with product and service innovations."
About International Money Express, Inc.
Founded in 1994, International Money Express, Inc. enables clients to electronically transfer money from regions such as the United States, Canada, and parts of Europe to over 60 countries. The Company delivers the digital movement of funds via a network that encompasses agent retailers, mobile applications, and Company-operated stores. Transactions are executed through a multitude of retail locations and banks globally.
Intermex maintains its headquarters in Miami, Florida, and has operational offices in several international locales including Puebla and Guatemala City. For more information about Intermex, visit www.intermexonline.com.
Investor Relations Contact
For further inquiries, please contact Alex Sadowski, Investor Relations Coordinator, at telephone number 305-671-8000 or via email at ir@intermexusa.com.
Frequently Asked Questions
What is the purpose of the $425 million credit facility?
The facility aims to refinance existing debt and enhance financial flexibility for future growth initiatives.
How will Intermex utilize funds from the new credit facility?
Funds will be used to repay a $72 million term loan and cover establishment costs of the revolving credit facility.
What is the interest rate for the new credit facility?
The interest rate will be based on SOFR plus a margin of 175 to 225 basis points.
Is there a share repurchase program in place?
Yes, the Board has approved increasing the share repurchase program to $100 million with $20 million allocated for the third and fourth quarters.
Who can I contact for investor relations questions?
Alex Sadowski is the point of contact for all investor relations inquiries at 305-671-8000 or ir@intermexusa.com.
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