WEX Inc., a provider of corporate payment solutions, announced a successful repricing of the Company’s revolving credit loans under its existing credit facility. The lenders have agreed to an amendment that reduces the applicable interest rate margin at current levels for both LIBOR borrowings and base rate borrowing by 25 basis points for revolving credit loans. In addition, the amendment (i) increases commitments under the Company’s revolving credit loans from $570,000,000 to $720,000,000, (iii) provides an additional tranche A-3 term loan in the amount of $25,000,000 so that outstanding tranche A-3 term loans increased from $409,500,000 to $434,500,000, and (iv) makes certain other changes to the existing Credit Agreement, including without limitation, (a) extending the maturity date for tranche A-3 term loans and revolving credit loans (as described below), (b) modifying the leverage ratios for determining the applicable interest rate on the tranche A-3 term loans and the revolving credit loans, and (c) modifying certain financial covenants (as described below).
The new maturity date for revolving credit loans and tranche A-3 term loans is July 1, 2023, subject to an earlier maturity date as described in the amendment if the Company does not repay, redeem, discharge or defease its tranche B-2 term loans and senior secured notes on or prior to 90 days before their respective maturity dates. The amendment extends by 1 year (from December 31, 2018 to December 31, 2019) the date on which the consolidated leverage ratio test reduces from 5.00:1.00 to 4.50:1:00, extends by 2 years (from December 31, 2019 to December 31, 2021) the date on which the consolidated leverage ratio test reduces to 4.00:1.00, and adds an interim consolidated leverage ratio test of 4.25:1.00 for a one year period from December 31, 2020 through September 30, 2021. Additionally, the amendment modifies the definition of specified acquisition to allow the Company to designate, one time, an acquisition involving the payment of consideration in excess of $300,000,000 and thereby permanently step up the leverage ratio by 0.5x.
Following the repricing, the applicable interest rate margin for the revolving credit loans and tranche A-3 term loans will be set at 2.00% for LIBOR borrowings and 1.00% for base rate borrowings.
In connection with the execution of the amendment, the Company paid certain customary fees and expenses of Bank of America, N.A. in its capacity 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.