EVO Payments has secured $150m capital from funds affiliated with private equity firm Madison Dearborn Partners (MDP) to support its financial position and its strategic plans during the crisis caused by the coronavirus (Covid-19) pandemic.
EVO will utilise part of the capital to repay its revolver borrowings.
The payments technology provider said that this will lower its “pro forma leverage ratio as of December 31, 2019 to 3.3x net debt to Adjusted EBITDA”.
The firm will also use the money to support potential investment opportunities in the future.
Additionally, the company revealed that it is withdrawing its 2020 annual guidance on account of the Covid-19 pandemic.
EVO said that the duration and extent of the crisis and its impact on the company is still uncertain.
It forecasts near-term revenue decline due to the pandemic.
Therefore, it implemented cost-reduction measures such as lowering fixed costs up to 20% for the rest of fiscal 2020 and capital expenditures by up to 75%.
EVO CEO James Kelly said: “We have taken decisive measures to ensure our business is best positioned to continue to serve our valued customers throughout this global pandemic.
“The long-term fundamentals of EVO’s business remain strong and, as the economy recovers, we believe these actions will support EVO’s continued growth through the execution of our strategic plan.”