IMXI

Business Context and Reporting Period

Company: International Money Express, Inc. (IMXI)
Filing Type: Form 8-K (Current Report)
Date of Report: August 29, 2024
Event: Entry into a Material Definitive Agreement (Second Amended and Restated Credit Agreement).

Key Financial Metrics and Debt Structure

This filing details a new financing arrangement rather than reporting operational financial results (revenue, profit, or cash flow) for a specific period.

• New Revolving Credit Facility: $425,000,000 (multi-currency).
• Incremental Facility: Uncommitted capacity for up to $100,000,000 in additional term and revolving loans.
• Maturity Date: August 29, 2029.
• Interest Rates (USD): SOFR or Base Rate plus a margin of 1.75% to 2.25% (SOFR) or 0.75% to 1.25% (Base Rate), based on leverage ratio.
• Interest Rates (EUR/GBP): EURIBOR or SONIA plus a margin of 1.75% to 2.25%.
• Commitment Fee: Up to 0.30% on unused availability.
• Collateral: Secured by liens on substantially all assets of the Company and certain domestic subsidiaries.

Material Changes Versus Prior Period

The Company replaced its Prior Credit Agreement (dated June 24, 2021) with the new Second A&R Credit Agreement.

• Debt Restructuring: Initial borrowings under the new facility were used to repay in full the remaining outstanding balance of the term loan under the Prior Credit Agreement.
• Increased Flexibility: The new agreement allows for unrestricted share repurchases provided the consolidated leverage ratio remains at or below 2.50:1.00.
• Restricted Payments: The Company may make restricted payments up to the greater of $30.3 million or 25% of Consolidated EBITDA annually.

Guidance, Covenants, and Risks

Financial Covenants:

• Minimum Interest Coverage Ratio: 3.00:1.00 (quarterly).
• Maximum Consolidated Leverage Ratio: 3.50x (quarterly), stepping up to 3.75x in the quarter of a material acquisition.

Permitted Uses of Proceeds: General corporate purposes, growth support, and share repurchases. Risks and Contingencies: The agreement includes customary covenants limiting the ability to grant liens, incur additional indebtedness, make acquisitions, dispose of assets, or issue dividends. Failure to meet financial covenants could result in default.

Investor Verification Checklist

• Verify the exact amount of initial borrowings drawn to repay the prior term loan.
• Confirm the Company's current consolidated leverage ratio to assess headroom for share repurchases under the 2.50:1.00 threshold.
• Review the full text of Exhibit 10.1 (Second Amended and Restated Credit Agreement) for specific definitions of Consolidated EBITDA and leverage calculations.
• Monitor future filings for any material acquisitions that would trigger the leverage ratio step-up to 3.75x.