WAY
Waystar Holding CORP
NASDAQ
8-K: Waystar Refinances Term Loans and Increases Revolving Credit Facility
Sentiment:
Credit Agreement Amendment
30 December 2024 4:10 PM
Waystar Holding Corp. has successfully refinanced its existing term loans, reduced interest rates, and increased its revolving credit facility, according to a recent 8-K filing.
Better than expected
The document indicates better results as the company has secured lower interest rates on its term loans and revolving credit facility, which will reduce its borrowing costs.
Summary
- Waystar Holding Corp. has entered into a Tenth Amendment to its First Lien Credit Agreement.
- The amendment refinances $1,166,772,750 of existing term loans with new term loans at reduced interest rates.
- The interest rate on the new term loans is either Adjusted Term SOFR plus 2.25% or the Alternate Base Rate plus 1.25%, both subject to floors.
- The previous rates were Adjusted Term SOFR plus 2.75% or the Alternate Base Rate plus 1.75%.
- The maximum borrowing capacity under the revolving credit facility was increased from $342.5 million to $400 million.
- Interest rates under the revolving credit facility were also reduced, with adjustments based on leverage ratios.
- The new rates are Adjusted Term SOFR plus 1.75% or the Alternate Base Rate plus 0.75%, with adjustments based on leverage ratios.
- The previous rates were Adjusted Term SOFR plus 2.25% or the Alternate Base Rate plus 1.25%.
- There was no change to the company's outstanding indebtedness as a result of this amendment.
- A 1.00% premium will be applied to the term loans if a repricing transaction occurs within six months of the amendment's closing date.
Sentiment
Score: 8
Explanation: The document reflects a positive financial move by Waystar, securing better terms on its debt and increasing its financial flexibility. The sentiment is positive from an investment perspective.
Positives
- The refinancing of term loans results in lower interest rates, reducing borrowing costs for Waystar.
- The increase in the revolving credit facility provides Waystar with greater financial flexibility.
- The reduced interest rates on the revolving credit facility also lower borrowing costs.
- The amendment does not increase the company's overall debt.
Negatives
- A 1.00% premium will be applied to the term loans if a repricing transaction occurs within six months of the amendment's closing date, which could be a cost if market conditions change.
Risks
- The potential for a repricing transaction within six months could trigger a 1.00% premium on the term loans.
- The interest rates on the revolving credit facility are subject to adjustments based on leverage ratios, which could increase borrowing costs if the company's leverage increases.
Future Outlook
The document does not contain any specific forward-looking statements or guidance beyond the terms of the credit agreement amendment.
Industry Context
This refinancing and increase in credit facility capacity is a common financial strategy for companies to optimize their capital structure and reduce borrowing costs. It suggests Waystar is taking steps to manage its debt effectively.
Comparison to Industry Standards
- Refinancing debt and increasing credit facilities are common practices in the corporate world, especially for companies looking to improve their financial position.
- The specific interest rates and terms of the agreement would need to be compared to similar transactions in the healthcare technology sector to assess their competitiveness.
- Companies like Change Healthcare, Optum, and athenahealth often engage in similar financial maneuvers to manage their debt and liquidity.
- The increase in the revolving credit facility is a positive sign, indicating that Waystar is preparing for future growth or potential acquisitions.
Stakeholder Impact
- Shareholders may view this as a positive development, as it reduces financial risk and provides more flexibility.
- Employees may benefit from the company's improved financial stability.
- Customers and suppliers may see this as a sign of Waystar's long-term viability.
Next Steps
- Waystar will likely implement the new terms of the credit agreement.
- The company may explore further financial strategies to optimize its capital structure.
Key Dates
- 2019-10-22: Date of the original First Lien Credit Agreement.
- 2019-12-02: Date of the First Amendment to the First Lien Credit Agreement.
- 2020-09-23: Date of the Second Amendment to the First Lien Credit Agreement.
- 2021-03-24: Date of the Third Amendment to the First Lien Credit Agreement.
- 2021-08-24: Date of the Fourth Amendment to the First Lien Credit Agreement.
- 2023-06-01: Date of the Fifth Amendment to the First Lien Credit Agreement.
- 2023-06-23: Date of the Sixth Amendment to the First Lien Credit Agreement.
- 2023-10-06: Date of the Seventh Amendment to the First Lien Credit Agreement.
- 2024-02-09: Date of the Eighth Amendment to the First Lien Credit Agreement.
- 2024-06-27: Date of the Ninth Amendment to the First Lien Credit Agreement.
- 2024-12-30: Date of the Tenth Amendment to the First Lien Credit Agreement.
Keywords
refinance, term loans, revolving credit facility, interest rates, credit agreement, Waystar, debt, financing
WAY
Waystar Holding CORP
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
30 April 2025 8:06 PM
Quarterly Report
- The company's revenue increased by 14.1% compared to the same period in the prior year.
- Net income improved significantly from a net loss to a net income of $29.3 million.
- Adjusted EBITDA increased by 16.2% compared to the same period in the prior year.
Better than expected
30 April 2025 4:05 PM
Earnings Release
- The company raised its full-year revenue and adjusted EBITDA guidance, indicating better-than-expected performance.
- The company's Q1 revenue growth of 14% year-over-year exceeded initial expectations.
Worse than expected
26 February 2025 4:30 PM
SEC Form 4 Filing
- A major shareholder selling a significant number of shares is generally viewed negatively by the market.
Capital raise
20 February 2025 9:00 PM
Registration Statement
- Waystar Holding Corp. is registering 2,300,000 additional shares of common stock.
- The proposed maximum offering price per share is $40.00.
- The maximum aggregate offering price for the new shares is $92,000,000.00.
- The underwriters have an option to purchase an additional 300,000 shares.
Better than expected
18 February 2025 6:46 AM
Annual Results
- The company's net loss decreased from $51.3 million in 2023 to $19.1 million in 2024.
- The company's revenue increased from $791.0 million in 2023 to $943.5 million in 2024.
Better than expected
18 February 2025 6:45 AM
Earnings Release
- The company's revenue and adjusted EBITDA exceeded expectations for the fourth quarter and full year 2024.
- The net loss improved significantly year-over-year.
- The company's guidance for fiscal year 2025 indicates continued growth and profitability.
Better than expected
30 December 2024 4:10 PM
Credit Agreement Amendment
- The document indicates better results as the company has secured lower interest rates on its term loans and revolving credit facility, which will reduce its borrowing costs.
Better than expected
6 November 2024 4:14 PM
Quarterly Report
- The company's net income of $5.4 million in Q3 2024 is a significant improvement from the net loss of $15.5 million in Q3 2023.
- The company's revenue growth of 21.7% year-over-year is a strong performance.
- The company's adjusted EBITDA increased year-over-year, indicating improved operational efficiency.
Better than expected
6 November 2024 4:07 PM
Quarterly Report
- The company's revenue growth of 22% year-over-year exceeded the 20% growth reported in the previous quarter, indicating an acceleration in business performance.
Worse than expected
7 August 2024 4:07 PM
Quarterly Report
- The company's net loss increased significantly compared to the same period last year, driven by higher operating expenses, particularly stock-based compensation and third-party fees related to debt repricing.
Capital raise
7 August 2024 4:07 PM
Quarterly Report
- Waystar completed its initial public offering (IPO) in June 2024, issuing 45,000,000 shares of common stock at $21.50 per share.
- The company received total proceeds of $914.3 million after deducting underwriting discounts and commissions.
- The underwriters exercised their option to purchase an additional 5,059,010 shares, resulting in additional net proceeds of $102.8 million.
- The company used the net proceeds from the IPO to repay $909.1 million of outstanding principal indebtedness under its First Lien Credit Facility.
Capital raise
28 May 2024 6:32 AM
Merger Announcement
- Waystar Holding Corp. is planning an initial public offering (IPO) to sell 45,000,000 shares of its common stock.
- The anticipated price range for the shares is between $20.00 and $23.00 per share.
- The underwriters have an option to purchase up to 6,750,000 additional shares.
- Neuberger Berman Investment Advisers LLC and a wholly owned subsidiary of Qatar Investment Authority (QIA) have indicated an interest in purchasing up to an aggregate of $225.0 million in shares of common stock in this offering at the initial public offering price.
- The company intends to use the net proceeds from this offering to repay outstanding indebtedness under its First Lien Credit Facility.
Capital raise
16 May 2024 11:56 AM
S-1/A Filing
- Waystar Holding Corp. is proposing an initial public offering of its common stock.
- The company intends to list its common stock on the Nasdaq Global Select Market under the symbol WAY.
- The IPO aims to raise funds to repay debt under the First Lien Credit Facility and for general corporate purposes.
- The underwriters have an option to purchase up to additional shares of common stock from the company.
Capital raise
29 April 2024 5:23 PM
S-1/A Filing
- Waystar Holding Corp. proposes to issue and sell shares of common stock to the several underwriters.
- The underwriters have an option to purchase additional shares of common stock from the company.
- The company intends to use the net proceeds from this offering to repay $ million aggregate principal amount of indebtedness under our First Lien Credit Facility, with any remainder to be used for general corporate purposes.
Capital raise
22 March 2024 5:11 PM
S-1/A Filing
- Waystar Holding Corp. is conducting an initial public offering of its common stock.
- The company intends to use the net proceeds from the offering to repay debt and for general corporate purposes.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.