Does the new senior term loan carry any covenants that could restrict future operational or financing flexibility?

Answer

Based on the information that was released in the Business Wire announcement, the details of the new senior credit facilities are limited to the following points:

The press release states that the proceeds will be used to “re‑” (the excerpt ends before the intended purpose is completed) and does not provide any further description of the loan documentation.

What the announcement does not tell us

1. Covenant structure – There is no mention of financial covenants (e.g., leverage ratios, interest‑coverage ratios, minimum cash‑balance requirements) or non‑financial covenants (e.g., limitations on asset sales, change‑of‑control provisions, restrictions on additional indebtedness, dividend restrictions, etc.).

2. Negative pledge or pari‑passu language – The release does not indicate whether the term loan is senior‑secured, senior‑unsecured, or has any “pari‑passu” ranking with existing debt, nor whether it contains a negative‑pledge clause that could limit the company’s ability to pledge assets for other financing.

3. Use‑of‑proceeds restrictions – Apart from the truncated phrase “will be used to re…”, the release does not specify any earmarking of the funds (e.g., for acquisitions, refinancing, capital expenditures, working capital) that could be viewed as a covenant‑like restriction.

4. Amendment or waiver provisions – No discussion of the lender’s rights to require amendments, waivers, or consent for future financing actions.

Reasoned conclusion

• No explicit covenant information is provided in the news release.
  
• Because the announcement is a high‑level corporate communication, it typically focuses on the size, type, and maturity of the facilities and the general purpose of the proceeds, while the detailed loan terms—including covenants—are usually disclosed later in the company’s SEC filings (e.g., a Form 8‑K, a financing agreement exhibit, or a subsequent earnings release).
  
• Consequently, we cannot confirm whether the term loan contains covenants that would restrict Priority Technology Holdings’ operational or financing flexibility based solely on this news excerpt.

What you can do next

1. Check the company’s filing with the SEC (most likely a Form 8‑K filed shortly after the press release). The filing will attach the credit agreement or a summary of material terms, which usually lists:

   • Financial covenants (leverage, EBITDA, net worth, etc.).
     
   • Negative covenants (limitations on incurring additional debt, liens, asset sales, dividend payments, etc.).
     
   • Any “financial maintenance” tests that must be met on a quarterly or annual basis.

2. Monitor subsequent earnings releases or investor presentations, where management often discusses covenant compliance and any flexibility they retain.

3. Contact investor relations if you need a quick clarification; companies sometimes provide a “FAQ” or a supplemental press release that addresses covenant‑related questions after a large financing announcement.

Bottom line: The press release does not disclose any covenant details, so we cannot determine from this source alone whether the new senior term loan imposes restrictions on Priority Technology Holdings’ future operations or financing activities. For a definitive answer, consult the company's SEC filings or directly request the credit‑agreement terms from the company.