News & Analysis

Prospect backs hotel payment group

Onyx Payments, a leading processor of hotel commissions, has acquired two new businesses by upsizing its credit facility with the mid-market lender.

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Prospect Capital Corporation, the NASDAQ-listed business development company, has upsized by $86.1 million its existing credit facility for Onyx Payments, a processor of payments for hotels and travel distributors.

The proceeds will be used to facilitate the recapitalisation of Onyx and the acquisitions of Norway-based Net Trans Services and Spain-based Worldwide Payment Systems. Net Trans provides complete hotel commission recovery services while WPS is a data and payment processing company specialised in the management and control of international payments worldwide.

Prospect is now the sole lender and agent of the first lien senior secured debt issued by Onyx, a portfolio company of US private equity firm H.I.G. Capital, the lender said in a statement.

The add-ons will “complement and boost Onyx’s existing commission processing services” and also help further expand Onyx’s global reach to European and Asian markets, it added.

Mark Dubrow, chief executive of Onyx, said: “We are excited to strengthen Onyx's competitive position in hotel commission payment processing and travel agency reconciliation services. We also are impressed with Prospect’s ability to navigate a complex transaction involving multiple international entities. This investment allows us to further expand our global footprint.”

Headquartered in Dallas, Texas, Onyx acts as a global clearinghouse for hotel commissions facilitating more than $500 million in payments annually. With regional hubs in London, Singapore, New York and Scottsdale, Arizona, the company operates a global payment network with services including commission receipt and disbursement, foreign currency exchange, invoicing as well as reconciliation and tracking.

Jason Wilson, managing director of Prospect Capital Management, commented: “Prospect’s ability to hold large one-stop investments is a significant differentiator in the middle market.”

Prospect Capital, which provides debt and equity investments, now has more than $7 billion capital under management.