WageWorks obtains $400 million amended, restated facility via MUFG

By Tali Rackner

Minneapolis, April 5 – WageWorks, Inc. entered into a second amended and restated credit on Tuesday with MUFG Union Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a $400 million revolving credit facility with a $15 million letter-of-credit subfacility.

The agreement contains an option that allows $100 million of additional commitments.

Interest is equal to Libor plus 125 basis points to 225 bps, depending on WageWorks’ consolidated leverage ratio.

The revolver is due on April 4, 2022.

The agreement requires that the company maintain compliance with a maximum ratio of consolidated debt to consolidated adjusted EBITDA for the 12 months ending at the end of each fiscal quarter of 3 times and a minimum ratio of consolidated adjusted EBITDA for the 12-month period ending at the end of each fiscal quarter of 1.5 times.

Proceeds may be used for general corporate purposes, including acquisitions.

At closing, the company had $247 million of outstanding revolving loans and a $500,000 undrawn letter of credit.

The credit agreement amends and restates the $150 million revolving credit facility dated June 5, 2015.

WageWorks is a San Mateo, Calif.-based on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits.

© 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.