Wex Increases 2011 Credit Pact to $1.1 Billion, Extends MaturityKrista Giovacco
Wex Inc., a payment-processing provider to the commercial and government vehicle-fleet industry, increased a credit pact it obtained in 2011 to $1.1 billion and extended the maturity.
A term portion was boosted to $300 million from $185 million and a revolving line of credit now totals $800 million, up from $700 million, according to a regulatory filing today. The revolver may be increased by $100 million.
Wex, based in South Portland, Maine, will pay interest at 1.25 percentage points to 2.25 percentage points more than the London interbank offered rate, depending upon its debt-to-earnings ratio, according to the filing. The loans will expire in January 2018.
Bank of America Corp. led the transaction, proceeds of which will support working capital purposes, acquisitions and dividends, according to the filing.
A portion of the debt may be repaid by a bond sale that the company announced today in a separate regulatory filing.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.