TORONTO, Nov. 23, 2020 (GLOBE NEWSWIRE) — Points Worldwide Ltd. (TSX: PTS) (Nasdaq: PCOM) (“Points” or the “Company”), the worldwide chief in powering loyalty commerce, introduced at this time that it has entered into an settlement to amend its present senior secured credit score facility (the “Amendment”) to offer covenant reduction by June 30, 2021.
“With our operations now stabilized, we took a well timed and proactive step to adapt our credit score facility to the present surroundings,” stated Rob MacLean, CEO of Points. “The modification supplies us with further monetary flexibility and ensures continued entry to our facility throughout this uncommon time, whereas strengthening an already strong stability sheet. I want to thank our lending companions for his or her ongoing assist and partnership.”
As a precautionary measure, Points drew down $40.zero million on its credit score facility in the course of the first quarter of 2020 in response to the early levels of the COVID-19 pandemic. Since that preliminary drawdown, Points elected to repay a complete of $10.zero million over the course of the second and third quarter of 2020. At September 30, 2020, Points had over $64.zero million of cash and cash equivalents on its stability sheet, which included $30.zero million of borrowings on its facility. Within the fourth quarter of 2020, Points and its lenders agreed to amend the credit score facility to droop the testing of its monetary covenants for 3 quarters, starting with the quarter ended December 31, 2020 by to the tip of Q2 2021. These assessments had been calculated on a trailing twelve-month foundation.
Underneath the phrases of the modification, the web senior leverage ratio, the curiosity protection ratio, and the fastened cost protection ratio, are changed by to the tip of Q2 2021 with a Minimal Adjusted EBITDA and a Minimal Liquidity take a look at, with the corporate agreeing to increase the Minimal Adjusted EBITDA take a look at two further quarters. As well as, the Firm agreed to scale back the power measurement from $50.zero million to $40.zero million.
About Points Worldwide Ltd.
Points (TSX: PTS) (Nasdaq: PCOM) is a trusted companion to the world’s main loyalty applications, utilizing a singular Loyalty Commerce Platform to construct, energy, and develop new methods for members to get and use their favorite loyalty forex. Our platform combines insights, know-how, and sources to make the motion of loyalty forex easier and extra clever for almost 60 reward applications all over the world. Based in 2000, Points is headquartered in Toronto with groups working across the globe.
For extra data, please go to points.com.
Warning Relating to Ahead-Wanting Statements
This press launch accommodates or incorporates forward-looking statements throughout the that means of United States securities laws, and forward-looking data throughout the that means of Canadian securities laws (collectively, “forward-looking statements”). These forward-looking statements embody or relate to however should not restricted to, amongst different issues, statements referring to plans the Firm has applied in response to the COVID-19 pandemic and its anticipated impression on the Firm (together with mitigation of the chance of a possible breach of its credit score facility) and the Firm’s skill to entry the undrawn portion of its credit score facility. These statements should not historic info however as a substitute symbolize solely Points’ expectations, estimates and projections concerning future occasions.
Though Points believes the expectations mirrored in such forward-looking statements are cheap, such statements should not ensures of future efficiency and are topic to necessary dangers and uncertainties which might be troublesome to foretell. Sure materials assumptions or estimates are utilized in making forward-looking statements, and precise outcomes may differ materially from these expressed or implied in such statements. Undue reliance shouldn’t be positioned on such statements. Specifically, uncertainty across the length and scope of the COVID-19 pandemic and the impression of the pandemic and actions taken in response on world and regional economies, financial exercise, and all parts of the journey and hospitality business may have a big and materially opposed impression on our enterprise. As well as, the dangers, uncertainties and different components that may impression the outcomes expressed or implied in such forward-looking statements embody, however should not restricted to: (i) airline or journey business disruptions, equivalent to an airline insolvency and continued airline consolidation; (ii) our dependence on a restricted variety of massive shoppers for a good portion of our consolidated income; (iii) our reliance on contractual relationships with loyalty program companions which might be topic to termination and renegotiation; (iv) our publicity to vital liquidity threat if we fail to fulfill contractual efficiency commitments; (v) our skill to transform our pipeline of potential companions or launch new merchandise with new or present companions as anticipated or deliberate; (vi) our dependence on numerous third-parties that present sure options in our Platform Companions phase that we market to loyalty program companions; (vii) the truth that our operations are carried out in a number of jurisdictions and in a number of currencies and as such dramatic fluctuations in exchange charges of the foreign currency echange can have a dramatic impact on our monetary outcomes and (viii) the chance of an occasion of default beneath our senior secured credit score facility. These and different necessary threat components that might trigger precise outcomes to vary materially are mentioned in Points’ annual data kind, Kind 40-F, annual and interim administration’s dialogue and evaluation (“MD&A”), and annual and interim monetary statements and the notes thereto. These paperwork can be found at www.sedar.com and www.sec.gov.
The forward-looking statements contained on this press launch are made as on the date of this launch and, accordingly, are topic to vary after such date. Besides as required by legislation, Points doesn’t undertake any obligation to replace or revise any forward-looking statements made or included on this press launch, whether or not on account of new data, future occasions or in any other case.
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