EverCommerce repriced its $533.5 million term loan, reducing interest costs by $3.3 million annually.
Quiver AI Summary
EverCommerce announced that it has successfully repriced the fixed rate component of its $533.5 million term loan, reducing the interest rate from SOFR plus 3.0% to SOFR plus 2.50%, which will save the company approximately $3.3 million annually based on its outstanding principal as of September 30, 2024. This change, made as part of the company’s transformation efforts, eliminates the credit spread adjustment but does not involve other material amendments to the loan agreement. Additionally, EverCommerce previously executed interest rate swaps totaling $425 million to further mitigate floating rate exposure. The company provides integrated SaaS solutions for service-oriented SMBs and aims to enhance customer and professional interactions through its various brands.
Potential Positives
- Successful repricing of the fixed rate component of a $533.5 million term loan, resulting in a reduction of the interest rate from SOFR plus 3.0% to SOFR plus 2.50%.
- Annualized interest cost savings of approximately $3.3 million on the outstanding principal amount as of September 30, 2024.
- Elimination of the credit spread adjustment, which simplifies the interest rate structure and enhances financial clarity.
- Completion of interest rate swaps with a combined notional amount of $425 million, effectively reducing the company's floating rate exposure.
Potential Negatives
- The mention of needing to potentially incur additional indebtedness or seek capital through new equity or debt financings suggests financial instability or challenges ahead for the company.
- The forward-looking statements include notable risks and uncertainties that could significantly impact future results, raising concerns about the company's financial health and strategic direction.
- The reliance on interest rate swaps to manage floating rate exposure may indicate vulnerability to interest rate fluctuations, which could adversely affect the company's financial performance.
FAQ
What is EverCommerce's recent loan repricing announcement about?
EverCommerce announced the repricing of its $533.5 million term loan, reducing the interest rate and saving approximately $3.3 million annually.
How much will EverCommerce save from the loan repricing?
The repricing is expected to save EverCommerce about $3.3 million annually on the outstanding loan principal.
What interest rate will the term loan bear after repricing?
After repricing, the term loan will have an interest rate of SOFR plus 2.50%.
What was the previous interest rate on the term loan?
The previous interest rate on the term loan was SOFR plus 3.0%.
What services does EverCommerce provide to businesses?
EverCommerce provides SaaS solutions that help service-based businesses enhance growth, streamline operations, and improve customer retention.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$EVCM Insider Trading Activity
$EVCM insiders have traded $EVCM stock on the open market 38 times in the past 6 months. Of those trades, 0 have been purchases and 38 have been sales.
Here’s a breakdown of recent trading of $EVCM stock by insiders over the last 6 months:
- ERIC RICHARD REMER (Chief Executive Officer) has traded it 31 times. They made 0 purchases and 31 sales, selling 231,596 shares.
- MATTHEW DAVID FEIERSTEIN (President) has traded it 3 times. They made 0 purchases and 3 sales, selling 26,915 shares.
- LISA E STOREY (Chief Legal Officer) has traded it 2 times. They made 0 purchases and 2 sales, selling 9,557 shares.
- EVAN BERLIN (Chief Operating Officer) sold 298 shares.
- MARC CHRISTOPHER THOMPSON (Chief Financial Officer) sold 1,947 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$EVCM Hedge Fund Activity
We have seen 36 institutional investors add shares of $EVCM stock to their portfolio, and 48 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FIL LTD removed 661,297 shares (-100.0%) from their portfolio in Q2 2024
- MILLENNIUM MANAGEMENT LLC removed 284,053 shares (-87.8%) from their portfolio in Q3 2024
- GREAT LAKES ADVISORS, LLC removed 203,420 shares (-100.0%) from their portfolio in Q2 2024
- WOODLINE PARTNERS LP added 124,698 shares (+41.0%) to their portfolio in Q3 2024
- WHETSTONE CAPITAL ADVISORS, LLC removed 90,457 shares (-100.0%) from their portfolio in Q2 2024
- HRT FINANCIAL LP removed 71,607 shares (-51.1%) from their portfolio in Q3 2024
- WINDSOR ADVISORY GROUP, LLC added 68,341 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
DENVER, Dec. 16, 2024 (GLOBE NEWSWIRE) -- EverCommerce (NASDAQ: EVCM), a leading provider of SaaS solutions for service SMBs, announced today that it successfully repriced the fixed rate component of its $533.5 million term loan as part of its continued transformation and optimization efforts. The term loan was repriced at par and will bear an interest rate of SOFR plus 2.50%.
The repricing reduced the fixed component of the interest rate determination by 50 basis points (from SOFR plus 3.0%) and eliminated the credit spread adjustment, resulting in an annualized interest cost savings of approximately $3.3 million on the outstanding principal amount as of September 30, 2024. There were no other material amendments to the term loan credit facility other than the repricing.
EverCommerce previously announced the execution of a series of interest rate swaps with a combined notional amount of $425 million, effectively reducing the company’s floating rate exposure.
Investor Contact:
Brad Korch
SVP and Head of Investor Relations
720-796-7664
i
[email protected]
Press Contact:
Jeanne Trogan
VP of Corporate Communications
512-705-1293
[email protected]
About EverCommerce
EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 690,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding anticipated annual interest cost savings. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, we may need to incur additional indebtedness or seek capital through new equity or debt financings in order to support the growth of our business as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
