San Jose, CA - May 05, 2005 - Verifone Holdings, Inc. (NYSE: PAY) announced today that in connection with its recently completed initial public offering it has reduced both the outstanding balance and the interest rate on the remaining balance under its Senior Credit Facility.
Utilizing proceeds from the April 29, 2005 Initial Public Offering, the Company, as anticipated, has repaid in full its $72.0 million Second Lien Loan, incurring a $2.2 million prepayment premium. Based on current rates, the annualized interest expense on the Second Lien Loan would have been approximately $6.6 million.
In addition, the Company’s recent repricing amendment with its senior lenders, led by Banc of America Securities and Credit Suisse First Boston, became effective following closing of its initial public offering. Under the repricing amendment, the interest rate spread for the Company’s Term B Loan was reduced by 50 basis points. The Company’s estimated annual interest savings from the reduction in rate is approximately $0.95 million on the $189 million outstanding on the Term B Loan as of January 31, 2005.
About Verifone Holdings, Inc.
Verifone Holdings, Inc. (“Verifone”) (NYSE: PAY), a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. Verifone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. Verifone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. Verifone has shipped over eleven million electronic payment systems since inception in 1981.