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- Waystar Holding (NASDAQ:WAY) has entered into an amendment to its first lien credit agreement with its lenders to reprice term loans, enhancing its ability to allocate free cash flow towards growth initiatives, it said Thursday after market.
- 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 (WAY) cost of borrowing and allow for interest expense savings.
- This 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 (WAY) 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.
- Source: Press Release