International Money Express, Inc. (NASDAQ:IMXI), a leading remittance services company, has entered into a significant financial agreement, as reported in a recent SEC filing. On Thursday, the company and its domestic subsidiaries secured a new $425 million revolving credit facility through a Second Amended and Restated Credit Agreement with KeyBank National Association and other lenders.
This new multi-currency credit line also includes an uncommitted incremental facility for additional term and revolving loans up to $100 million.
The agreement is set to mature on August 29, 2029. Initial borrowings under this facility have been utilized to repay the outstanding balance of the company's term loan and to cover costs associated with establishing the new credit line.
The credit facility, which supports the company's growth and potential share repurchases, offers variable interest rates tied to SOFR, the base rate, EURIBOR, or SONIA, plus a margin dependent on the company's leverage ratio.
The company is also subject to an annual commitment fee on unused credit portions and must adhere to a minimum interest coverage ratio and a maximum leverage ratio, with allowances for certain restricted payments and share repurchases under specific conditions.
The agreement includes customary covenants limiting the company's ability to undertake certain activities such as incurring additional debt, asset disposal, or engaging in transactions with affiliates, subject to stipulated exceptions and thresholds.
The new credit facility is guaranteed by International Money Express and certain subsidiaries, with liens on substantially all of their assets, excluding some limitations. This strategic financial move is part of International Money Express's broader efforts to strengthen its financial position and support its operational and strategic initiatives.
InvestingPro Insights
International Money Express, Inc. (NASDAQ:IMXI) has recently made a noteworthy stride in securing its financial flexibility with a new $425 million revolving credit facility. In light of this development, InvestingPro data and tips provide a deeper understanding of the company's current financial health and market position. As of the last twelve months ending Q2 2024, IMXI boasts a solid market capitalization of $574.55M and a compelling P/E ratio of 9.46, indicating a reasonable valuation compared to near-term earnings growth. This is further accentuated by a PEG ratio of 0.8, suggesting that the company's earnings growth is not overpriced.
Moreover, the company's revenue has grown by 9.26% over the last twelve months, reflecting a steady upward trend in its financial performance. The gross profit margin stands at a robust 33.88%, underscoring the company's efficiency in managing its cost of goods sold. The positive return on assets of 10.15% also highlights the company's effectiveness in utilizing its assets to generate earnings.
InvestingPro Tips reveal that management's aggressive share buybacks could be a sign of confidence in the company's value, while the stock's recent poor performance over the last month, with a -17.61% return, might present a buying opportunity for investors. Additionally, it’s worth noting that IMXI is trading at a high Price / Book multiple of 4.05, which investors should consider in the context of the company's overall financial health and industry benchmarks. While the company does not pay dividends, analysts predict profitability for this year, which could be an important factor for growth-focused investors.
For those seeking further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/IMXI, which can help investors make more informed decisions regarding International Money Express and its recent financial maneuvers.
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