Software

USA Technologies secures $5 million credit agreement with JPMorgan Chase Bank

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August 17, 2020

USA Technologies Inc., a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, has entered into a credit agreement with JPMorgan Chase Bank, N.A. which provides for a $5 million secured revolving credit facility and a $15 million secured term facility, according to a press release.

The company will use the net proceeds to repay all outstanding borrowings under its previous revolving credit facility and plans to use remaining proceeds and available cash for working capital needs and general corporate purposes.

The credit facility replaces its existing debt facility, which it entered into on Oct. 9, 2019, and has a three-year maturity. Until December 31, 2021, interest on the credit facility will be based, at the company's option, on a base rate plus 3.75% or on LIBOR plus 4.75%. Thereafter, the applicable margin will be tied to the company's total leverage ratio and having ranges of between 2.75% and 3.75% for base rate loans and between 3.75% and 4.75% for LIBOR loans.