FLEETCOR Technologies, a global business payments company, amended its pro-rata credit facility, increasing the overall facility size from $4.01 billion to $4.5 billion due to high demand and extending the maturity to a new five-year term ending in June 2027.
The term loan A was increased from $2.72 billion to $3 billion and the revolving credit facility was increased from $1.285 billion to $1.5 billion. The pro-rata credit facility was converted from a LIBOR to SOFR base rate with margins on borrowings approximately 12.5 bps lower than the pro-rata facility pre-amendment. FLEETCOR anticipates using the increased debt facility for general corporate purposes and to fund future acquisitions.
“We’re super pleased with the broad participation and demand for our refinanced credit facility, resulting in $500 million of incremental liquidity at a slightly lower cost,” Ron Clarke, chairman and CEO of FLEETCOR Technologies, said.
“These upsized credit facilities with extended duration and improved terms are reflective of high demand for our credit as a result of the strength, free cash flow and outlook of our company,” Charles Freund, CFO of FLEETCOR Technologies, said.
Bank of America is the administrative agent and Bank of America, MUFG Bank, PNC Bank, TD Bank and Wells Fargo Bank served as joint lead arrangers and co-syndication agents in connection with the transaction. Bank of Montreal, Capital One, Fifth Third Bank, Mizuho Bank, Regions Bank, The Bank of Nova Scotia and Citizens Bank served as co-documentation agents. Barclay’s Bank and Royal Bank of Canada served as co-managing agents.