WEX amends credit agreement to get additional $222.5 million term loan

By Susanna Moon

Chicago, Aug. 28 – WEX Inc. entered into an amended and restated credit agreement on Aug. 22 that provides for a $500 million term loan due Jan. 31, 2018 and a $700 million secured revolving credit facility that terminates on Jan. 31, 2018, according to an 8-K filing with the Securities and Exchange Commission.

The amendment and restatement increases the outstanding amount of the term loans to $500 million from $277.5 million and does not change the amount of the $700 million revolver.

The revolver has a $150 million sublimit for letters of credit and a $20 million sublimit for swingline loans.

Interest on the loans will be Libor plus 125 basis points to 275 bps, based on the ratio of consolidated funded debt.

The quarterly commitment fee ranges from 20 bps to 45 bps.

Proceeds may be used for working capital purposes, acquisitions, payment of dividends and other restricted payments, refinancing of debt and other general corporate purposes.

The company also amended its credit terms on Aug. 22 to permit additional financings and investments for an asset sale.

The amendment also modifies negative covenants and adds Wright Express International Holdings Ltd. as a designated borrower.

The changes were needed for the sale of the Esso Card Business in an agreement with WEX Europe Services Ltd., Exxon Mobile Petroleum & Chemical BVBA and Esso Petroleum Co. Ltd.

Bank of America, NA is the administrative agent.

South Portland, Maine-based WEX is a provider of corporate card payment solutions.

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