FleetCor gets $900 million five-year multi-currency credit facility

By Angela McDaniels

Tacoma, Wash., June 24 - FleetCor Technologies, Inc. subsidiary FleetCor Technologies Operating Co., LLC entered into a five-year $900 million credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The multi-currency facility consists of a $300 million term loan and a $600 million revolver. Borrowings can be made in dollars, euros, pounds sterling or Japanese yen.

The initial interest rate is Libor plus 175 basis points, and the commitment fee for the revolver is 30 bps.

The margin over Libor can range from 125 bps to 225 bps, depending on leverage. The commitment fee ranges from 20 bps to 40 bps.

There is a $150 million accordion feature.

Bank of America, NA is the administrative agent. The lead arrangers and bookrunners are Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC. The syndication agents are JPMorgan Chase Bank, NA and Wells Fargo Bank, NA. The documentation agents are PNC Bank, NA and Lloyds TSB Bank plc.

The company must make quarterly amortization payments on the term loan beginning Sept. 30. The payments are $3.75 million per quarter and step up to $7.5 million on Sept. 30, 2013 and to $15 million on Sept. 30, 2015.

Proceeds were used to retire outstanding amounts under FleetCor's existing credit facilities in the amount of about $329.6 million. Proceeds will also be used for working capital purposes, acquisitions and other general corporate purposes.

The company also amended its securitization facility to remove a compliance certification reporting requirement and certain financial covenant requirements.

FleetCor is a Norcross, Ga.-based provider of specialized payment products and services to businesses, commercial fleets, oil companies, petroleum marketers and government entities.

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