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 /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.
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 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.
"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."
Additional 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.
About Waystar
Waystar's mission-critical software is
purpose-built to simplify healthcare payments so providers can
prioritize patient care and optimize their financial performance.
Waystar serves approximately 30,000 clients, representing over 1
million distinct providers, including 18 of 22 institutions on the
U.S. News Best Hospitals list. Waystar's enterprise-grade platform
annually processes over 5 billion healthcare payment transactions,
including over $1.2 trillion in
annual gross claims and spanning approximately 50% of U.S.
patients. Waystar strives to transform healthcare payments so
providers can focus on what matters most: their patients and
communities. Discover the way forward at waystar.com.
Forward-Looking Statements
This press release contains
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, that reflect management's
current views with respect to, among other things, Waystar's
business strategy, goals, and expectations concerning Waystar's
future operations and performance, borrowing costs, margins,
profitability, liquidity, capital allocation, leverage, and capital
resources and other financial and operating information.
Forward-looking statements include all statements that are not
historical facts. These statements may include words such as
"anticipate," "assume," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "plan," "potential," "predict,"
"project," "future," "will," "seek," "foreseeable," "outlook," the
negative version of these words or similar terms and phrases to
identify forward-looking statements in this press release.
The forward-looking statements contained in this press release
are based on management's current expectations and are not
guarantees of future performance. The forward-looking statements
are subject to various risks, uncertainties, assumptions, or
changes in circumstances that are difficult to predict or quantify.
Waystar's expectations, beliefs, and projections are expressed in
good faith, and Waystar believes there is a reasonable basis for
them. However, there can be no assurance that management's
expectations, beliefs, and projections will result or be
achieved.
The following factors are among those that may cause actual
results to differ materially from the forward-looking statements:
Waystar's operation in a highly competitive industry; Waystar's
ability to retain its existing clients and attract new clients;
Waystar's ability to successfully execute on its business
strategies in order to grow; Waystar's ability to accurately assess
the risks related to acquisitions and successfully integrate
acquired businesses; Waystar's ability to establish and maintain
strategic relationships; the growth and success of Waystar's
clients and overall healthcare transaction volumes; consolidation
in the healthcare industry; Waystar's selling cycle of variable
length to secure new client agreements; Waystar's implementation
cycle that is dependent on its clients' timing and resources;
Waystar's dependence on its senior management team and certain key
employees, and Waystar's ability to attract and retain highly
skilled employees; the accuracy of the estimates and assumptions
Waystar uses to determine the size of its total addressable market;
Waystar's ability to develop and market new solutions, or enhance
its existing solutions to respond to technological changes, or
evolving industry standards; the interoperability, connectivity,
and integration of Waystar's solutions with its clients' and their
vendors' networks and infrastructures; the performance and
reliability of internet, mobile, and other infrastructure; the
consequences if Waystar cannot obtain, process, use, disclose, or
distribute the highly regulated data Waystar requires to provide
its solutions; Waystar's reliance on certain third-party vendors
and providers; any errors or malfunctions in its products and
solutions; failure by Waystar's clients to obtain proper
permissions or provide us with accurate and appropriate
information; the potential for embezzlement, identity theft, or
other similar illegal behavior by Waystar's employees or vendors,
and a failure of Waystar's employees or vendors to observe quality
standards or adhere to environmental, social, and governance
standards; Waystar's compliance with the applicable rules of the
National Automated Clearing House Association and the applicable
requirements of card networks; increases in card network fees and
other changes to fee arrangements; the effect of payer and provider
conduct which Waystar cannot control; privacy concerns and security
breaches or incidents relating to Waystar's platform; the complex
and evolving laws and regulations regarding privacy, data
protection, and cybersecurity; Waystar's ability to adequately
protect and enforce its intellectual property rights; Waystar's
ability to use or license data and integrate third-party
technologies; Waystar's use of "open source" software; legal
proceedings initiated by third parties alleging that Waystar is
infringing or otherwise violating their intellectual property
rights; claims that Waystar's employees, consultants, or
independent contractors have wrongfully used or disclosed
confidential information of third parties; the heavily regulated
industry in which Waystar conducts business; the uncertain and
evolving healthcare regulatory and political framework; health care
laws and data privacy and security laws and regulations governing
Waystar's processing of personal information; reduced revenues in
response to changes to the healthcare regulatory landscape; legal,
regulatory, and other proceedings that could result in adverse
outcomes; consumer protection laws and regulations; contractual
obligations requiring compliance with certain provisions of the
Bank Secrecy Act and anti-money laundering laws and regulations;
existing laws that regulate Waystar's ability to engage in certain
marketing activities; Waystar's full compliance with website
accessibility standards; any changes in Waystar's tax rates, the
adoption of new tax legislation, or exposure to additional tax
liabilities; limitations on Waystar's ability to use its net
operating losses to offset future taxable income; losses due to
asset impairment charges; restrictive covenants in the agreements
governing Waystar's credit facilities; interest rate fluctuations;
unavailability of additional capital on acceptable terms or at all;
the impact of general macroeconomic conditions; actions of certain
of Waystar's significant investors, who may have different
interests than the interests of other holders of Waystar's
securities; and each of the other factors discussed under the
heading of "Risk Factors" in Waystar's prospectus filed with the
SEC on June 7, 2024 and in other
reports filed with the SEC, all of which are available on the
investor relations page of Waystar's website at
investors.waystar.com.
Any forward-looking statements made by Waystar in this press
release speaks only as of the date of this press release and are
expressly qualified in their entirety by the cautionary statements
included in this press release. Factors or events that could cause
Waystar's actual results to differ may emerge from time to time,
and it is not possible for Waystar to predict all of them. You
should not place undue reliance on Waystar's forward-looking
statements. Waystar undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments, or otherwise, except as may be
required by any applicable securities laws.
Media Contact
Daniel
Yunger / Nick Capuano /
Kerry Kelly
Kekst CNC
kekst-waystar@kekstcnc.com
Investor Contact
Sandy
Draper
investors@waystar.com
502-238-9511
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SOURCE Waystar