International Money Express, Inc. Secures $425 Million Credit Facility
International Money Express, Inc. (NASDAQ: IMXI), a prominent omni-channel money remittance company, has successfully refinanced its existing secured debt by establishing a new revolving credit facility worth $425 million. This new credit agreement allows for loans in U.S. Dollars, Euros, and Pound Sterling, and it also introduces an uncommitted incremental credit line that permits additional loans of up to $100 million.
Details of the New Credit Facility
The newly formed revolving credit facility is set to mature in 2029 and features an interest rate linked to SOFR, with an added margin ranging from 175 to 225 basis points based on the Company’s total leverage ratio. This arrangement results in a notable $133 million increase in credit availability, offering better terms compared to SOFR. Additionally, the covenants included in the new facility grant the Company greater operational flexibility, allowing for increased capacity in share repurchases and potential mergers and acquisitions.
Utilization of the Credit Facility
Intermex plans to use part of the proceeds from this new facility to repay its existing $72 million term loan and to cover the costs associated with establishing the revolving credit line. This strategic decision highlights Intermex's commitment to maintaining a strong financial foundation while effectively managing operational expenses.
Board Approval for Share Repurchase Program
In a related move, the Intermex Board of Directors has approved an increase in the Company’s share repurchase program. The total authorization has been raised to $100 million, up from the previous $39.4 million at the end of the second quarter. The Board has authorized share repurchases of up to $20 million for both the third and fourth quarters.
Management Statements
Andras Bende, Chief Financial Officer, stated, "The successful acquisition of this facility underscores the confidence the debt capital market has in Intermex and our omnichannel strategy, which targets a $156 billion market in Latin America and beyond. This new credit facility enhances our financing efficiency, enabling us to optimize our balance sheet as we enter the next growth phase."
Bob Lisy, Chairman of the Board, CEO, and President, remarked, "Our strong performance suggests that repurchasing stock is a wise investment opportunity and a prudent use of our capital at this time. With our solid liquidity position, we are well-equipped to return value to shareholders while advancing our product and service innovations."
About International Money Express, Inc.
Established in 1994, International Money Express, Inc. enables clients to electronically transfer funds from locations such as the United States, Canada, and parts of Europe to over 60 countries. The Company facilitates the digital movement of money through a network that includes agent retailers, mobile applications, and Company-operated stores. Transactions are conducted at numerous retail locations and banks worldwide.
Intermex is headquartered in Miami, Florida, with operational offices in various international locations, including Puebla and Guatemala City. For more information about Intermex, visit www.intermexonline.com.
Investor Relations Contact
For any inquiries, please reach out to Alex Sadowski, Investor Relations Coordinator, at 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 is intended to refinance existing debt and provide financial flexibility for future growth initiatives.
How will Intermex utilize funds from the new credit facility?
The funds will be allocated to repay a $72 million term loan and to cover the costs of establishing 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 an increase in the share repurchase program to $100 million, with $20 million designated for the third and fourth quarters.
Who can I contact for investor relations questions?
For investor relations inquiries, you can contact Alex Sadowski at 305-671-8000 or via email at ir@intermexusa.com.
