TORONTO, Nov 23, 2020 (GLOBE NEWSWIRE) – Points International Ltd. (TSX: PTS) (Nasdaq: PCOM) (“Points” or the “Company”), the global leader in loyalty trading, today announced that it has reached an agreement to amend its secured credit facility existing first rank (the “Amendment”) to provide restrictive covenants relief until June 30, 2021.
“With our operations now stabilized, we have taken a timely and proactive step to adapt our credit facility to the current environment,” said Rob MacLean, CEO of Points. “The amendment gives us additional financial flexibility and ensures continued access to our facility during this unusual time, while strengthening an already strong balance sheet. I would like to thank our lending partners for their continued support and partnership. “
As a precautionary measure, Points drew $ 40.0 million on its credit facility during the first quarter of 2020 in response to the early stages of the COVID-19 pandemic. Since that initial charge, Points has elected to repay a total of $ 10.0 million in the second and third quarters of 2020. As of September 30, 2020, Points had over $ 64.0 million in cash and cash equivalents. on its balance sheet, including $ 30.0 million. millions of loans on its facility. In the fourth quarter of 2020, Points and its lenders agreed to modify the credit facility to suspend testing of its financial covenants for three quarters, starting from the quarter ended December 31, 2020 until the end of the second quarter of 2021. These tests were calculated on a rolling twelve month basis.
Under the amendment, the senior net leverage ratio, the interest coverage ratio and the fixed charge coverage ratio are replaced until the end of the second quarter of 2021 with a minimum adjusted EBITDA and a minimum liquidity test. , with the company committing to extend the adjusted EBITDA test for a minimum of two additional quarters. In addition, the Company has agreed to reduce the size of the facility from $ 50.0 million to $ 40.0 million.
About Points International Ltd.
Points (TSX: PTS) (Nasdaq: PCOM) is a trusted partner of the world’s leading loyalty programs, using a unique loyalty trading platform to create, fuel and develop new ways for members to get and use their preferred loyalty currency. Our platform combines information, technology and resources to make the movement of loyalty currency easier and smarter for nearly 60 rewards programs around the world. Founded in 2000, Points is headquartered in Toronto with teams operating around the world.
For more information, please visit points.com.
Caution Regarding Forward-Looking Statements
This press release contains or incorporates forward-looking statements within the meaning of US securities law, and forward-looking information within the meaning of Canadian securities law (collectively, “forward-looking statements”). These forward-looking statements include or relate to, but not limited to, among others, statements relating to the plans the Company has implemented in response to the COVID-19 pandemic and its expected impact on the Company (including including mitigating the risk of a potential breach of its credit facility) and the Company’s ability to access the unused portion of its credit facility. These statements are not historical facts but represent only Points’ expectations, estimates and projections regarding future events.
Although Points believes that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and are subject to important risks and uncertainties which are difficult to predict. Certain important assumptions or estimates are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. We should not place undue reliance on such statements. In particular, the uncertainty regarding the duration and extent of the COVID-19 pandemic and the impact of the pandemic and the measures taken in response on global and regional economies, economic activity and all elements of the world. The travel and hospitality industry can have a significant and significant impact. negative impact on our business. In addition, risks, uncertainties and other factors that may affect the results expressed or implied in these forward-looking statements include, without limitation: (i) disruption to airlines or the travel industry, such as airline insolvency and continued airline consolidation; (ii) our dependence on a limited number of large customers for a significant portion of our consolidated sales; (iii) our reliance on contractual relationships with loyalty program partners which are subject to termination and renegotiation; (iv) our exposure to significant liquidity risk if we fail to meet our contractual performance commitments; (v) our ability to convert our pipeline of potential partners or launch new products with new or existing partners as planned or planned; (vi) our reliance on various third parties who provide certain solutions in our platform partner segment which we market to loyalty program partners; (vii) the fact that our operations are conducted in multiple jurisdictions and in multiple currencies and, as such, dramatic fluctuations in foreign currency exchange rates can have a dramatic effect on our financial results and (viii) the risk of ” an event of default under our senior secured credit facility. These risk factors, as well as other significant risk factors that could cause actual results to differ materially, are discussed in Points’ Annual Information Form, Form 40-F, Annual and Interim MD&A (“MD&A ”), And the annual and interim financial statements and notes thereto. These documents are available at www.sedar.com and www.sec.gov.
The forward-looking statements contained in this press release are made as of the date of this press release and, therefore, are subject to change after such date. Except as required by law, Points assumes no obligation to update or revise any forward-looking statements made or incorporated in this press release, whether as a result of new information, future events or otherwise.
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