Planet Payment (LON:PPT and PPTR, OTCQX:PLPM) has cleared US$4 million of its long term debt in a deal with its creditor the Inter-Atlantic Fund L.P.
The New York headquartered payment and card services business raised US$6 million through a share placing in October.
It has now paid US$2 million in cash, whilst the remaining US$2 million was discharged concurrently as Inter-Atlantic exercised share warrants, which were issued back in 2005.
Subsequently Planet Payment is issuing Inter-Atlantic 1.5 million new shares at US$1.31 each. It will also issue a further 255,625 new shares - under the restricted PPTR line of stock - to cover accrued interest.
"The decision by the lender to accept partial repayment in Common Stock demonstrates their confidence in the company's business plan and progress,” Chief executive Philip Beck said.
“The repayment and conversion of debt to equity continue our efforts to strengthen our balance sheet and reduce our interest expense going forward."
Planet Payment revealed strong revenue growth in last month’s interim results statement. It reported a 32 percent rise in year-on-year revenue.
In November it said it was benefiting from increased transaction processing volumes, due to an increased number of active merchant locations and improving economic conditions.
The group's payment processing platform allows merchants and financial organisations to process and reconcile payments across any currency at the point of sale.
It now has 46 banking and processing customers who have continued to roll out Planet Payment's products and services in sixteen different countries.
Looking ahead the company said that momentum continues to build, particularly with its strong pipeline for multi-currency processing services in existing and new regions.
Daniel Stewart & Co featured the group in its ' Morning Notes', saying the repayment of the loan note is no surprise following the US$6m capital raising in October but lifts a key overhang for the group.
"Post the rollout into eight new countries this year and the lifting of the Visa moratorium in September, Planet Payment looks set to activate a strong flow of new merchant locations in Q4 and into next year," the broker added.
It reiterated its 'buy' stance on the stock, with a 120 pence price target.