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8-K - FORM 8-K - iPayment, Inc. | g27358e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
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Contact: | Mark Monaco | ||
Chief Financial Officer | ||||
(615) 665-1858, Ext. 115 |
iPAYMENT COMPLETES EQUITY REDEMPTION
| Carl Grimstad Becomes Chairman and CEO | ||
| Mark Monaco Appointed to Board of Directors | ||
| Comprehensive Refinancing Provides Capital Structure Supporting Prospects for Long-Term Growth |
NASHVILLE, Tennessee (May 23, 2011) iPayment, Inc., together with its affiliates,
(iPayment) today announced that it has completed the last step under its previously announced
comprehensive refinancing in which it has redeemed the equity interests of Gregory Daily,
iPayments former Chairman and Chief Executive Officer, and entities controlled by him or in trust
for the benefit of his family members. Concurrent with the redemption, Mr. Daily resigned all of
his positions at iPayment. Additionally, through the redemption agreement Mr. Daily entered into
non-competition and non-solicitation covenants under which he has agreed not to compete with
iPayment and not to solicit employees, sales agents, independent sales groups and merchant
customers of iPayment. With the completion of the redemption, Mr. Daily is no longer affiliated
with iPayment in any capacity.
With the consummation of the equity redemption, Carl Grimstad, who is currently President of
iPayment, became the Companys Chairman and Chief Executive Officer. Mr. Grimstad also has become
iPayments primary shareholder. In addition, Mark Monaco, iPayments Chief Financial Officer, has
been appointed to iPayments Board of Directors. iPayment intends to add three independent
directors to the Board in the near future.
Commenting on the announcement, Mr. Grimstad said, 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,
independent sales groups and other iPayment stakeholders and to focus on growing our business.
About iPayment
iPayment, Inc. is a leading provider of credit and debit card payment processing services to small
merchants across the United States. iPayments payment processing services enable merchants to
accept credit cards from VISA, MasterCard, American Express, Discover and Diners Club, as well
other forms of electronic payments including debit cards, checks, gift cards and loyalty programs.
iPayment provides services to approximately 132,000 small merchants throughout the country.
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Forward Looking Statements
Information in this press release may contain forward-looking statements about iPayment, Inc.
These statements involve risks and uncertainties and are not guarantees of future results,
performance or achievements, and actual results, performance or achievements could differ
materially from the Companys current expectations as a result of numerous factors, including but
not limited to the following: acquisitions; liability for merchant chargebacks; restrictive
covenants governing the Companys indebtedness; actions taken by the Companys bank sponsors;
migration of merchant portfolios to new bank sponsors; the Companys reliance on card payment
processors and on independent sales groups; changes in interchange fees; risks associated with the
unauthorized disclosure of data; imposition of taxes on Internet transactions; actions by the
Companys competitors; and risks related to the integration of companies and merchant portfolios
the Company has acquired or may acquire. These and other risks are more fully disclosed in the
Companys filings with the U.S. Securities and Exchange Commission, including without limitation
the Companys Annual Report on Form 10-K for 2010 and its Form 10-Q for the three months ended
March 31, 2011. The Company undertakes no obligation to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise after the date of this
release.
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