iPayment plans one or more credit agreements as part of refinancing

By Tali Rackner

Norfolk, Va., Jan. 18 – iPayment Inc. plans to enter into one or more credit agreements with JPMorgan as a part of its comprehensive refinancing agreement, according to a press release.

The company said it would also repay the obligations outstanding under its existing credit agreement and certain other debt, and amend the existing indenture governing its 9˝% notes and make certain amendments to iPayment Holdings, Inc.’s certificate of incorporation, bylaws and existing investor rights agreement.

The debt and equity holders entering into the agreement with the company agreed to vote all shares of iPayment Holdings’ common stock held by them in favor of such amendments.

As previously reported, iPayment and iPayment Holdings signed an agreement for a comprehensive refinancing of iPayment with the holders of roughly 79% of the company’s outstanding 9˝% senior secured notes due 2019.

The senior secured noteholders also hold about 41% of the holding company’s common stock.

iPayment said the refinancing would result in a substantial deleveraging of the company and would enable it to significantly expand its services and product offerings.

The refinancing is expected to close in the first quarter and is subject to a number of conditions, including obtaining the new credit facilities.

iPayment is a New York-based provider of credit and debit card payment processing services to small merchants.

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