Financial Overview
iPayment is one of the largest processors of small to medium size merchants in the United States. We have approximately 190,000 merchants with none representing over 1% of revenue. In 2010 we processed in excess of $22.7 billion in merchant sales representing approximately $699 million in revenue.
On May 6, 2011, we completed an offering of $400 million in aggregate principal amount of 10.25% Senior Notes due 2018. We also completed the closing of our $450 million New Senior Secured Credit Facilities, consisting of (i) a $375 million term loan facility and (ii) a $75 million revolving credit facility, with the ability to request an increase of $25 million in the amount of revolving loans. The new revolving credit facility will mature on May 6, 2016, and the new term loan facility will mature on May 8, 2017.
Also on May 6, 2011, our parent, iPayment Holdings, Inc. ("Holdings"), completed an offering of 125,000 units (the "Units"), consisting of $125 million in aggregate principal amount of 15.00%/15.00% Senior Notes due 2018 ("Holdings' Notes") and 125,000 warrants (the "Warrants") to purchase common stock of Holdings. The Warrants represent an aggregate 2.5% of the outstanding common stock of Holdings on a fully diluted basis (after giving effect to the Warrants).
The majority of the proceeds from the offerings of the New Senior Notes and the Units, together with borrowings under the New Senior Secured Credit Facilities, were used to (i) permanently repay all of the outstanding indebtedness under our existing senior secured credit facilities; (ii) redeem and satisfy and discharge all of our existing senior subordinated notes; (iii) make a distribution to our parent in an amount that enabled it to redeem and satisfy and discharge all of its existing PIK toggle notes and (iv) pay fees and expenses in connection with the offerings. The remainder of such proceeds and borrowings were used to consummate an Equity Redemption and related fees and expenses.
With the completion of the Equity Redemption and the flexible capital structure created by our associated comprehensive refinancing, our organization is now well positioned to serve and support our merchant customers, sales agents, ISGs and other iPayment stakeholders and to focus on growing our business.
