Corpay, a global S&P 500 corporate payments company, closed on an amendment to its term loan B credit facility that resulted in an increase of $750 million. The transaction is leverage neutral, and the interest rate and maturity remain consistent with the existing credit facility. Initially, the company will use the proceeds to pay down its revolver balance, resulting in approximately $1.5 billion of undrawn capacity on the revolver.
“We’re very pleased with the broad participation and oversubscribed demand for our credit facility, which reflects the broad-based confidence in Corpay’s durable earnings power,” Ron Clarke, chairman and CEO of Corpay, said. “Our balance sheet is in great shape to execute our capital plan as we look to expand our corporate payments business.”
“Our term loan B credit facility reflects some of the tightest credit spreads amongst the BB+ corporates, which reflects our strong balance sheet and the significant cash flows Corpay consistently generates,” Tom Panther, chief financial officer of Corpay, said. “Our outlook for EBITDA and free cash flow in 2025 enables us to execute our capital plan without increasing our leverage ratio.”
Both Moody’s and S&P Global maintained their credit ratings on Corpay of Ba1 and BB+, respectively, and maintained a stable credit outlook.
Bank of America is the administrative agent and BofA Securities, PNC Capital Markets, TD Securities (USA), Wells Fargo Securities, MUFG Bank, Fifth Third Bank, Barclays Bank PLC, BMO Capital Markets, Mizuho Bank, The Bank of Nova Scotia, Citizens Bank, Capital One, Citibank and JPMorgan Chase Bank served as joint lead arrangers and joint bookrunners.
