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EVERTEC Announces Refinancing of Credit Facilities

November 28, 2018

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Nov 28, 2018--EVERTEC, Inc. (NYSE:EVTC) (“Evertec” or the “Company”) announced that the Company successfully refinanced its existing credit facilities on November 27, 2018. The new $670 million of total credit facilities consist of a $125 million 5-year revolving credit facility along with a $220 million 5-year term loan A and a $325 million 6-year term loan B.

Joaquin Castrillo, Chief Financial Officer stated, “We are pleased to have completed the refinancing of our credit facilities. The upsized revolver will provide additional financial flexibility as we continue to execute on our growth strategy in Latin America.”

Proceeds from the new loans, a $10 million draw on the revolving credit facility, along with $15 million of cash on the balance sheet, were used to repay the Company’s existing term debt ($191 million and $379 million of former term loan A and B, respectively).

The interest rate improved 25 basis points to LIBOR+225 for both the term loan A and the revolving credit facility, based on Evertec’s resulting consolidated leverage. The term loan B increased 100 basis points to LIBOR+350. Evertec anticipates approximately $0.02 to $0.03 impact on adjusted earnings per share in 2019 due to increased interest expense resulting from the refinancing and excluding any impact from hedging activities.

About Evertec

EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processing business in Latin America, providing a broad range of merchant acquiring, payment processing and business solutions services. The Company manages a system of electronic payment networks that process more than two billion transactions annually and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing. In addition, Evertec owns and operates the ATH® network, one of the leading personal identification number (“PIN”) debit networks in Latin America. Based in Puerto Rico, the Company operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions. For more information, visit www.evertecinc.com.

Forward-Looking Statement

Certain statements in this press release constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of EVERTEC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by, or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” and “plans” and similar expressions of future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.

Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: our reliance on our relationship with Popular for a significant portion of our revenues pursuant to our master services agreement with them, and our reliance on Banco Popular, to grow our merchant acquiring business; as a regulated institution, we most likely will be required to obtain regulatory approval before engaging in certain new activities or businesses, whether organically or by acquisition, and may be unable to obtain such approval on a timely basis or at all, which may make transactions more expensive or impossible to complete, or make us less attractive to potential sellers; our ability to renew our client contracts on terms favorable to us, including our contract with Popular; our dependence on our processing systems, technology infrastructure, security systems and fraudulent payment detection systems, as well as on our personnel and certain third parties with whom we do business, and the risks to our business if our systems are hacked or otherwise compromised; our ability to develop, install and adopt new software, technology and computing systems; a decreased client base due to consolidations and failures in the financial services industry; the credit risk of our merchant clients, for which we may also be liable; the continuing market position of the ATH network; a reduction in consumer confidence, whether as a result of a global economic downturn or otherwise, which leads to a decrease in consumer spending; our dependence on credit card associations, including any adverse changes in credit card association or network rules or fees; changes in the regulatory environment and changes in international, legal, tax, political, administrative or economic conditions; the geographical concentration of our business in Puerto Rico, including our business with the government of Puerto Rico and its instrumentalities, which are facing severe fiscal challenges; additional adverse changes in the general economic conditions in Puerto Rico, whether as a result of the government’s debt crisis or otherwise, including the continued migration of Puerto Ricans to the U.S. mainland, which could negatively affect our customer base, general consumer spending, our cost of operations and our ability to hire and retain qualified employees; the risks in connection with operating an international business in Latin America and the Caribbean, in jurisdictions with potential political and economic instability; our ability to execute our geographic expansion and acquisition strategies, including challenges in successfully acquiring new businesses and integrating and growing acquired businesses; our ability to protect our intellectual property rights against infringement and to defend ourselves against claims of infringement brought by third parties; our ability to recruit and retain the qualified personnel necessary to operate our business; our ability to comply with U.S. federal, state, local and foreign regulatory requirements; evolving industry standards and adverse changes in global economic, political and other conditions; our high level of indebtedness and restrictions contained in our debt agreements, including the senior secured credit facilities, as well as debt that could be incurred in the future; our ability to prevent a cybersecurity attack or breach in our information security; our ability to generate sufficient cash to service our indebtedness and to generate future profits; our ability to refinance our debt; the possibility that we could lose our preferential tax rate in Puerto Rico; the risk that the counterparty to our interest rate swap agreement fails to satisfy its obligations under the agreement; uncertainty of the pending debt restructuring process under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), as well as actions taken by the Puerto Rico government or by the PROMESA Board to address the Puerto Rico fiscal crisis; uncertainty related to Hurricanes Irma and Maria and their aftermaths’ impact on the economies of Puerto Rico and the Caribbean; the possibility of future catastrophic hurricanes affecting Puerto Rico and/or the Caribbean, as well as other potential natural disasters; and the nature, timing and amount of any restatement.

Consideration should be given to the areas of risk described above, as well as those risks set forth under the headings “Forward-Looking Statements” and “Risk Factors” in the reports the Company files with the SEC from time to time, in connection with considering any forward-looking statements that may be made by the Company and its businesses generally. We undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181128005109/en/

CONTACT: Investors

Kay Sharpton

(787) 773-5442

IR@evertecinc.com

KEYWORD: CARIBBEAN PUERTO RICO

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: EVERTEC, Inc.

Copyright Business Wire 2018.

PUB: 11/28/2018 04:05 PM/DISC: 11/28/2018 04:05 PM

http://www.businesswire.com/news/home/20181128005109/en

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