WEX amends facility with $300 million term loan, $800 million revolver

By Marisa Wong

Madison, Wis., Jan. 22 - WEX Inc. entered into an amended and restated credit agreement on Jan. 18 with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit agreement provides for a five-year $300 million term loan facility and a five-year $800 million secured revolving credit facility with a $150 million sublimit for letters of credit and a $20 million sublimit for swingline loans.

The credit facility may be increased by up to an additional $100 million.

Any outstanding loans mature on Jan. 18, 2018.

Interest is equal to Libor plus 125 basis points to 225 bps, based on the ratio of consolidated funded debt to consolidated EBITDA.

The commitment fee ranges from 20 bps to 40 bps, also depending on the ratio of consolidated funded debt to consolidated EBITDA.

A covenant under the agreement requires that the company reduce revolving commitments on a dollar-for-dollar basis if the company issues more than $300 million principal amount of senior or senior subordinated notes.

In addition, the credit agreement contains restrictive covenants and financial covenants including the following:

• The company must maintain at the end of each fiscal quarter a consolidated EBIT to consolidated interest charges ratio of no less than 3.00 to 1.00; and

• The company must maintain a consolidated funded indebtedness to consolidated EBITDA ratio of no more than 3.25 to 1.00.

The company may elect to increase the permissible ratio under the latter financial covenant to 3.75 to 1.00 in connection with some acquisitions.

Obligations under the credit agreement are guaranteed by subsidiaries Wright Express Fueling Solutions, Inc., FleetOne Holdings, LLC, FleetOne, LLC and TransPlatinum Service, LLC and secured by a pledge of 65% of the stock of wholly owned subsidiary Wright Express Australia Holdings Pty. Ltd. Proceeds from the facility may be used for working capital purposes, acquisitions, payment of dividends and other restricted payments, debt refinancing and other general corporate purposes.

The credit agreement amends and restates the credit agreement dated May 23, 2011 with Bank of America as administrative agent and WEX and wholly owned subsidiary Wright Express Card Holdings Australia Pty. Ltd. as borrowers. The previous credit agreement included a $185 million term loan and a $700 million revolver.

Wright Express Card Holdings Australia is also a designated borrower under the new credit agreement.

The South Portland, Maine-based company separately announced on Tuesday that it plans to repay a portion of its senior secured credit facility using proceeds from an offering of senior notes due 2023.

WEX is a corporate card payment solutions provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.