Should EVERTEC’s New US$150 Million Term Loan B Shift (EVTC) Require Action From Investors?

• On November 25, 2025, Evertec, Inc. and its subsidiary Evertec Group, LLC entered into a fifth amendment to their Credit Agreement, adding a US$150,000,000 Term Loan B facility to repay borrowings under the existing revolving credit line at unchanged interest margins.
• This refinancing shifts short-term revolver usage into longer-term term debt, potentially giving EVERTEC clearer liquidity visibility and more stable funding for its operations and growth initiatives.
• We’ll now examine how replacing revolver borrowings with a US$150,000,000 Term Loan B facility could reshape EVERTEC’s investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

EVERTEC Investment Narrative Recap

To own EVERTEC, you need to believe in sustained digital payments growth in Latin America and the company’s ability to convert that into steady earnings while managing debt and customer concentration. The new US$150,000,000 Term Loan B mainly cleans up the balance sheet by terming out revolver borrowings and does not materially change the near term catalyst of execution on technology modernization, nor the key risk around reliance on large clients like Popular.

The most relevant recent development here is EVERTEC’s upgraded 2025 revenue and EPS guidance, which reinforces the idea that operational momentum is intact as the company refines its capital structure. Together with the added term loan, this points to a business that is trying to balance growth investments, acquisitions and shareholder returns like buybacks, while still facing real constraints around capital intensity and exposure to regional volatility.

Yet beneath the headline of improved liquidity, investors should still pay close attention to the concentration risk around...

Read the full narrative on EVERTEC (it's free!)

EVERTEC's narrative projects $1.0 billion revenue and $193.8 million earnings by 2028. This requires 5.0% yearly revenue growth and about a $55.9 million earnings increase from $137.9 million today.

Uncover how EVERTEC's forecasts yield a $32.80 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community see EVERTEC’s fair value between US$30.64 and about US$56.32, highlighting how far opinions can stretch. Against this backdrop, the shift from short term revolver debt to a US$150,000,000 Term Loan B raises important questions about how you weigh financial flexibility against the ongoing need to fund heavy technology investment and Latin American expansion.

Explore 3 other fair value estimates on EVERTEC - why the stock might be worth just $30.64!

Build Your Own EVERTEC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EVERTEC research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free EVERTEC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EVERTEC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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