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DISTRESSED DAILY: A Halt in Commerce Weighs on VeriFone

April 7, 2020, 12:00 PM

With global commerce slumping, VeriFone Systems Inc. has a veritable problem.

  • The payment system company’s clients range from retailers to equally-ailing gas-station operators, businesses that don’t have nearly as much use for its services at the moment.
  • Debt holders, in the meantime, have pushed its $2.175 billion term loan well into distressed territory.
    • The first-lien senior secured loan due 2025 has plunged from near par in January to about 61 cents on the dollar as of Monday, according to data compiled by Bloomberg.
  • VeriFone, with “limited revenue growth and elevated leverage,” also operates in a “highly intense” competitive environment, analysts...





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