Corpay announced it has completed a refinancing transaction that increases its revolving credit facility by $925 million to $3.7 billion and expands its Term Loan A by $420 million to $3.3 billion, with both facilities extended through new five year terms ending in 2031.
The company said the amended facilities carry U.S. dollar interest rates that are 10 basis points lower than the previous agreements, which is expected to reduce annual interest expenses. Corpay also plans to use $1 billion of the proceeds to pay down and refinance a portion of its Term Loan B, resulting in a $2.9 billion Term Loan B maturing in November 2032.
According to the company, the refinancing increases liquidity by more than $1 billion while extending debt maturities and lowering financing costs.
Corpay chairman and chief executive officer Ron Clarke said the expanded and extended facilities reflect the durability of the company’s earnings power and provide additional liquidity to support growth initiatives.
Chief financial officer Peter Walker said the amended debt facility continues to price at attractive levels and is expected to generate interest expense savings over the extended term.
Bank of America served as Administrative Agent for the transaction. Joint Lead Arrangers and Joint Bookrunners included BofA Securities, PNC Bank, JPMorgan Chase, Barclays, TD Securities, Wells Fargo Securities, and BMO Capital Markets.
Corpay is a global corporate payments and expense management provider offering employee payment solutions, B2B vendor payment automation, and cross-border payment services to businesses worldwide.
KEY QUOTES:
“We’re very pleased to upsize and extend our credit facilities. This is a reflection of the durability of Corpay’s earnings power, and these amended facilities provide us additional liquidity to grow the business.”
Ron Clarke, Chairman and Chief Executive Officer, Corpay
“Our debt facility continues to price at very attractive levels, and will result in interest expense savings for the extended term. We’re very appreciative of our bank partners stepping up to support this upsized credit facility.”
Peter Walker, Chief Financial Officer, Corpay
