FleetCor launches $1.05 billion term loan B at Libor plus 300 bps

By Sara Rosenberg

New York, Sept. 10 – FleetCor Technologies Inc. launched on Wednesday its $1.05 billion seven-year term loan B with price talk of Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99˝, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

The company’s $3,785,000,000 senior secured credit facility (BB+) also includes a $1 billion revolver A, a $35 million revolver B and a $1.7 billion five-year term loan A.

Bank of America Merrill Lynch, Barclays, PNC Capital Markets LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Commitments are due on Sept. 24, the source added.

Proceeds will be used to help fund the acquisition of Comdata Inc. from Ceridian LLC for $3.45 billion.

Other funds for the transaction will come from the issuance of about 7.3 million shares of FleetCor common stock to Ceridian.

Closing is expected in December, subject to regulatory approvals and other customary conditions.

Pro forma leverage will be 3.3 times at year-end.

FleetCor is a Norcross, Ga.-based provider of fuel cards and workforce payment products to businesses. Comdata is a Brentwood, Tenn.-based business-to-business provider of electronic payment solutions.

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