Long-Term Debt and Lines of Credit

9 Months Ended

Sep. 30, 2022

Long-Term Debt and Lines of Credit

Long-Term Debt and Lines of Credit

(13)     Long-Term Debt and Lines of Credit

Credit Facility

In November 2021, EVO Payments International, LLC (“EPI”), a wholly-owned subsidiary of EVO, Inc., entered into a Second Restatement Agreement to Amended and Restated Credit Agreement (the “Restatement Agreement”) by and among EPI, as borrower, the subsidiaries of the borrower identified therein, as guarantors, Citibank, N.A., as administrative agent, Truist Bank, as the successor administrative agent and the lenders party thereto, to amend and restate our existing senior secured credit facilities (as amended and restated by the Restatement Agreement, the “Senior Secured Credit Facilities”). As of September 30, 2022, the Senior Secured Credit Facilities include revolver commitments of $200.0 million that mature in November 2026 and a $588.0 million term loan that matures in November 2026.

As of September 30, 2022, the term loan bears an interest rate of 4.87% and the revolving credit facility had no borrowings outstanding.

As of September 30, 2022 and December 31, 2021, the Company’s long-term debt consists of the following:

	September 30,		December 31,
	2022		2021
	(In thousands)
Term loan	$	576,975	$	588,000
Less debt issuance costs		(4,487)		(5,310)
Total long-term debt		572,488		582,690
Less current portion of long-term debt, net of current portion of debt issuance costs		(14,092)		(14,058)
Total long-term debt, net of current portion	$	558,396	$	568,632

Principal payment requirements on the above obligations in each of the years remaining subsequent to September 30, 2022 are as follows:

Years ending:	(In thousands)
2022 (remainder of the year)	$	3,675
2023		14,700
2024		29,400
2025		44,100
2026		485,100
2027 and thereafter		—
Total	$	576,975

The Credit Facilities contain certain customary representations and warranties, affirmative covenants and events of default. If an event of default occurs, the lenders under the Credit Facilities will be entitled to take various actions, including the acceleration of amounts due thereunder and exercise of the remedies on the collateral. As of September 30, 2022, the Company was in compliance with all its financial covenants under the Senior Secured Credit Facilities.

The Company maintains intraday and overnight facilities to fund its settlement obligations. These facilities are short-term in nature, have variable interest rates, are subject to annual review and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. At September 30, 2022 and December 31, 2021, the Company had $3.6 million and $8.0 million outstanding under these lines of credit, respectively, with additional capacity of $127.3 million and $142.6 million, respectively, to fund its settlement obligations. The weighted-average interest rates on these borrowings were 8.3% and 5.2% as of September 30, 2022 and December 31, 2021, respectively.

Refer to Note 13, “Long-Term Debt and Lines of Credit,” to the audited consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for discussion regarding the Company’s long-term debt and lines of credit.