Business
Waystar announces term loan repricing and credit rating upgrades from Fitch, Moody's, and S&P Global
Reduces Waystar's cost of capital and enhances its ability to allocate free cash flow towards growth initiatives LEHI, Utah and LOUISVILLE, Ky., June 27, 2024
About this update from Waystar Holding Corp.
[{"type":"text","content":"Reduces Waystar's cost of capital and enhances its ability to allocate free cash flow towards growth initiatives\nLEHI, Utah and LOUISVILLE, Ky., June 27, 2024 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today announced that it has entered into an amendment to its first lien credit agreement (the \"amended credit agreement\") with its lenders to reprice term loans. Under the terms of the amended credit agreement, the term loan borrowings will now carry a reduced interest rate of adjusted SOFR +2.75%, compared to the previous interest rate of adjusted SOFR +4.00%. The amended credit agreement is expected to reduce Waystar's cost of borrowing and allow for interest expense savings.\n\nThis action follows Waystar's initial public offering on June 7, 2024, with the net proceeds used to reduce debt. Following the offering, Fitch Ratings upgraded Waystar's long-term issuer default rating to 'BB' from 'B' with a positive outlook. Moody's Ratings upgraded Waystar's senior secured rating to 'B1' from 'B3' with a stable outlook, and S&P Global Ratings upgraded Waystar's issuer credit rating to 'B+' from 'B-' with a stable outlook. In announcing these upgrades, the rating agencies cited significant deleveraging, strong operating performance, continued growth momentum, and consistent free cash flow generation.\n\"We are pleased to be repricing at a more favorable rate, reflecting continued momentum following our initial public offering,\" said Matt Hawkins, Chief Executive Officer of Waystar. \"We believe that the rating upgrades from Fitch, Moody's, and S&P underscore our ongoing commitment to strengthening our balance sheet and our strong growth outlook. Looking ahead, we expect our durable recurring revenue model, attractive margin profile, and robust free cash flow generation will enable us to prioritize continued deleveraging while investing in our platform for growth.\"\nAdditional information about the terms of the amended credit agreement is set forth in a Current Report on Form 8-K filed by Waystar with the Securities and Exchange Commission on June 27, 2024, which is available on the investor relations page of Waystar's website at investors.waystar.com.\nAbout WaystarWaystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prio...