WEX Inc. Completes Term Loan Repricing
January 17 2018 - 4:24PM
Business Wire
WEX Inc. (NYSE:WEX), a leading provider of corporate payment
solutions, today announced a successful repricing of the Company’s
secured term loans under its existing credit facility. The lenders
have agreed to an amendment that reduces the applicable interest
rate margin at current levels for LIBOR borrowings by 50 basis
points for the Company’s existing tranche B term loans, as well as
the incurrence of an additional $153 million of tranche term B
loans. The net proceeds from this transaction will be used to
reduce borrowings under the Company’s existing revolver. Following
the repricing, the applicable interest rate margin for the tranche
B term loans will be set at 2.25% for LIBOR borrowings.
Bank of America, N.A. acted as administrative agent, joint lead
arranger and joint bookrunner. MUFG Union Bank, N.A., SunTrust
Robinson Humphrey, Inc., and Citizens Bank, N.A., also acted as
joint lead arrangers and joint bookrunners, and Bank of Montreal
acted as documentation agent.
WEX Inc. reminds investors that on December 27, 2017, it
reported the successful execution of $500 million in five-year
interest rate swaps at an average rate of 2.21%. The Company
expects that the interest rate swaps will help mitigate the impact
of potential increases in interest rates on the Company’s floating
rate debt.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment
solutions. From its roots in fleet card payments beginning in 1983,
WEX has expanded the scope of its business into a multi-channel
provider of corporate payment solutions representing more than 11
million vehicles and offering exceptional payment security and
control across a wide spectrum of business sectors. WEX serves a
global set of customers and partners through its operations around
the world, with offices in the United States, Australia, New
Zealand, Brazil, the United Kingdom, Italy, France, Germany,
Norway, and Singapore. WEX and its subsidiaries employ more than
3,000 associates. The Company has been publicly traded since 2005,
and is listed on the New York Stock Exchange under the ticker
symbol “WEX.” For more information, visit www.wexinc.com and follow
WEX on Twitter at @WEXIncNews.
Safe Harbor Statement
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such by the context of the statements,
including words such as “believe,” “expect,” “anticipate,” “plan,”
“may,” “would,” “intend,” “estimate,” “guidance” and other similar
expressions, whether in the negative or affirmative. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry and markets
in which the Company operates and management’s beliefs and
assumptions. There can be no assurance that the benefits of the
long term loan repricing or swap arrangements will be successful in
maximizing the Company’s capital structure. The Company cannot
guarantee that it actually will achieve the financial results,
plans, intentions, expectations or guidance disclosed in the
forward-looking statements made. Such forward-looking statements,
and all phases of operations, involve a number of risks and
uncertainties, any one or more of which could cause actual results
to differ materially from those described in such forward-looking
statements. Such risks and uncertainties include or relate to,
among other things: the effects of general economic conditions on
fueling patterns as well as payment and transaction processing
activity; the impact of foreign currency exchange rates on the
Company’s operations, revenue and income; changes in interest
rates; the impact of fluctuations in fuel prices; the effects of
the Company’s business expansion and acquisition efforts; potential
adverse changes to business or employee relationships, including
those resulting from the completion of an acquisition; competitive
responses to any acquisitions; uncertainty of the expected
financial performance of the combined operations following
completion of an acquisition; the ability to successfully integrate
the Company's acquisitions, including Electronic Funds Source LLC's
operations and employees; the ability to realize anticipated
synergies and cost savings; unexpected costs, charges or expenses
resulting from an acquisition; the Company's failure to
successfully operate and expand ExxonMobil's European and Asian
commercial fuel card programs; the failure of corporate investments
to result in anticipated strategic value; the impact and size of
credit losses; the impact of changes to the Company's credit
standards; breaches of the Company’s technology systems or those of
third-party service providers and any resulting negative impact on
the Company’s reputation, liabilities or relationships with
customers or merchants; the Company’s failure to maintain or renew
key agreements; failure to expand the Company’s technological
capabilities and service offerings as rapidly as the Company’s
competitors; failure to successfully implement the Company’s
information technology strategies and capabilities in connection
with its technology outsourcing and insourcing arrangements and any
resulting cost associated with that failure; the actions of
regulatory bodies, including banking and securities regulators, or
possible changes in banking or financial regulations impacting the
Company’s industrial bank, the Company as the corporate parent or
other subsidiaries or affiliates; the impact of the Company’s
outstanding notes on its operations; the impact of increased
leverage on the Company's operations, results or borrowing capacity
generally, and as a result of acquisitions specifically; the
incurrence of impairment charges if the Company’s assessment of the
fair value of certain reporting units changes; the uncertainties of
litigation; as well as other risks and uncertainties identified in
Item 1A of the Company’s Annual Report for the year ended December
31, 2016, filed on Form 10-K with the Securities and Exchange
Commission on March 6, 2017 and the Company’s Quarterly Report on
Form 10-Q for the three months ended March 31, 2017 filed with the
Securities and Exchange Commission on May 8, 2017.
The Company's forward-looking statements do not reflect the
potential future impact of any alliance, merger, acquisition,
disposition or stock repurchases. The forward-looking statements
speak only as of the date of this press release and undue reliance
should not be placed on these statements. The Company disclaims any
obligation to update any forward-looking statements as a result of
new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20180117006465/en/
WEX Inc.Jessica Roy,
207-523-6763Jessica.Roy@wexinc.comorInvestor relations:WEX
Inc.Steve Elder, 207-523-7769Steve.Elder@wexinc.com
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