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Waystar cuts loan costs, expands credit facility

Published 12/31/2024, 05:22 AM
WAY
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LEHI, Utah – Waystar Holding Corp. (NASDAQ:WAY), a healthcare payment software provider with a market capitalization of $6.53 billion, has revised its credit agreement with lenders, resulting in a lower interest rate for its term loan and an increased revolving credit facility. The term loan's interest rate has been decreased to adjusted SOFR +2.25% from the prior rate of adjusted SOFR +2.75%. Additionally, Waystar's revolving credit capacity will grow to $400 million from $342.5 million, with a new interest rate of adjusted SOFR +1.75%, down from the previous rate of adjusted SOFR +2.25%. According to InvestingPro data, the company maintains a healthy current ratio of 2.29, indicating strong ability to meet short-term obligations.

This move is anticipated to reduce Waystar's borrowing costs and save on interest expenses. These changes follow the company's successful initial public offering on June 7, 2024, and an earlier loan repricing on June 27, 2024. The IPO's net proceeds were used to decrease debt. The stock has shown remarkable performance since its IPO, with InvestingPro analysis showing an 83.19% return year-to-date and currently trading near its 52-week high of $38.34.

Further information on the amended credit agreement can be found in Waystar's Current Report on Form 8-K, which was filed with the Securities and Exchange Commission on December 30, 2024.

The press release includes forward-looking statements about expected future borrowing costs and the impact of the amended credit agreement. However, these statements are not guaranteed and are subject to risks, uncertainties, and changes in circumstances that could affect the actual outcomes.

Waystar's software is designed to simplify healthcare payments, serving around 30,000 clients and processing over 5 billion payment transactions annually. The company's platform manages over $1.2 trillion in annual gross claims and serves about 50% of U.S. patients. InvestingPro data reveals strong revenue growth of 18.23% over the last twelve months, with analysts projecting continued profitability this year. For detailed analysis and 12 additional ProTips about Waystar's performance, investors can access the comprehensive Pro Research Report available on InvestingPro.

The details provided in this article are based on a press release statement from Waystar.

In other recent news, Waystar Holding Corp. has made strategic financial moves by refinancing approximately $1.17 billion in outstanding term loans and boosting its credit line. This maneuver aimed to optimize its capital structure and reduce borrowing costs, as indicated in the company's SEC filing. The new terms offer a reduced interest rate, reflecting a decrease from the prior rates.

Further, Waystar's third-quarter results showed a notable increase in Net Revenue Retention (NRR), leading to a growth rate exceeding 20%. This performance has positioned Waystar as a leading entity in the vertical software sector. In response to these developments, various financial firms have expressed growing confidence in Waystar's potential.

Raymond (NS:RYMD) James upgraded Waystar's stock from Outperform to Strong Buy, while Goldman Sachs and RBC Capital Markets raised their price targets for Waystar. Barclays (LON:BARC), BofA Securities, and William Blair initiated coverage on Waystar, focusing on the company's consistent growth and impressive EBITDA margins. Evercore ISI upgraded Waystar to an Outperform rating, praising its strong operating margins and history of organic growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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