Corpay, a global S&P 500 corporate payments company, announced that it closed on an amendment to its Term Loan B credit facility that increased its balance by $750 million. The deal 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.
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, Wells Fargo Securities, MUFG Bank, Fifth Third Bank, National Association, Barclays Bank, BMO Capital Markets, Mizuho Bank, The Bank of Nova Scotia, Citizens Bank, Capital One, National Association, Citibank, and JPMorgan Chase Bank served as Joint Lead Arrangers and Joint Bookrunners.
KEY QUOTES:
“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. Our balance sheet is in great shape to execute our capital plan as we look to expand our Corporate Payments business.”
– Ron Clarke, chairman and chief executive officer, Corpay
“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. Our outlook for EBITDA and free cash flow in 2025 enables us to execute our capital plan without increasing our leverage ratio.”
– Tom Panther, chief financial officer, Corpay
