WEX Announces Pricing and Upsizing of $550 Million Senior Unsecured Notes Offering
WEX Inc. (NYSE: WEX) has announced the pricing and upsizing of its senior unsecured notes offering to $550 million, an increase of $50 million from the previously announced $500 million. The notes, due 2033, will carry a 6.500% interest rate paid semi-annually.
The company plans to use the proceeds, along with a proposed $450 million incremental term loan B facility and cash on hand, to fund:
- A tender offer to purchase company shares for up to $750 million
- Repayment of approximately $250 million outstanding under the revolving credit facility
- Related fees and expenses
The offering is expected to close on March 6, 2025, subject to customary conditions. The notes will be guaranteed by WEX's wholly-owned domestic subsidiaries that guarantee the company's senior secured credit facilities.
WEX Inc. (NYSE: WEX) ha annunciato il prezzo e l'aumento della sua offerta di note senior non garantite a 550 milioni di dollari, un incremento di 50 milioni rispetto ai 500 milioni precedentemente annunciati. Le note, in scadenza nel 2033, avranno un tasso d'interesse del 6,500% pagato semestralmente.
L'azienda prevede di utilizzare i proventi, insieme a un prestito termico incrementale B di 450 milioni di dollari proposto e a liquidità disponibile, per finanziare:
- Un'offerta di acquisto di azioni della società fino a 750 milioni di dollari
- Il rimborso di circa 250 milioni di dollari dovuti sotto la linea di credito rotativa
- Spese e costi correlati
L'offerta dovrebbe chiudersi il 6 marzo 2025, soggetta a condizioni consuete. Le note saranno garantite dalle sussidiarie domestiche interamente possedute da WEX che garantiscono le strutture di credito senior garantite della società.
WEX Inc. (NYSE: WEX) ha anunciado el precio y el aumento de su oferta de notas senior no garantizadas a 550 millones de dólares, un incremento de 50 millones respecto a los 500 millones anunciados previamente. Las notas, con vencimiento en 2033, tendrán una tasa de interés del 6,500% pagada semestralmente.
La empresa planea utilizar los ingresos, junto con un préstamo termal incremental B de 450 millones de dólares propuesto y efectivo disponible, para financiar:
- Una oferta de compra de acciones de la compañía por hasta 750 millones de dólares
- El reembolso de aproximadamente 250 millones de dólares pendientes bajo la línea de crédito rotativa
- Honorarios y gastos relacionados
Se espera que la oferta cierre el 6 de marzo de 2025, sujeto a condiciones habituales. Las notas estarán garantizadas por las subsidiarias nacionales de propiedad total de WEX que garantizan las instalaciones de crédito senior garantizadas de la empresa.
WEX Inc. (NYSE: WEX)는 자사의 고위험 무담보 노트 공모 가격을 5억 5천만 달러로 발표했으며, 이는 이전에 발표된 5억 달러에서 5천만 달러 증가한 것입니다. 이 노트는 2033년에 만기가 되며, 6.500%의 이자율이 반기별로 지급됩니다.
회사는 수익금과 함께 제안된 4억 5천만 달러의 추가 대출 B 시설 및 현금을 사용하여 다음을 자금 지원할 계획입니다:
- 7억 5천만 달러까지 회사 주식을 매입하기 위한 입찰 제안
- 회전 신용 시설에서 미지급된 약 2억 5천만 달러의 상환
- 관련 수수료 및 비용
이번 공모는 2025년 3월 6일에 마감될 예정이며, 일반적인 조건에 따라 진행됩니다. 이 노트는 회사의 고위험 담보 신용 시설을 보증하는 WEX의 전액 소유 국내 자회사에 의해 보증됩니다.
WEX Inc. (NYSE: WEX) a annoncé le prix et l'augmentation de son offre de billets senior non garantis à 550 millions de dollars, soit une augmentation de 50 millions par rapport aux 500 millions précédemment annoncés. Les billets, arrivant à échéance en 2033, porteront un taux d'intérêt de 6,500% payé semestriellement.
La société prévoit d'utiliser les produits, ainsi qu'un prêt à terme B supplémentaire de 450 millions de dollars proposé et des liquidités disponibles, pour financer :
- Une offre de rachat d'actions de la société jusqu'à 750 millions de dollars
- Le remboursement d'environ 250 millions de dollars dus dans le cadre de la ligne de crédit renouvelable
- Les frais et dépenses connexes
L'offre devrait se clôturer le 6 mars 2025, sous réserve de conditions habituelles. Les billets seront garantis par les filiales nationales entièrement détenues de WEX qui garantissent les facilités de crédit senior garanties de l'entreprise.
WEX Inc. (NYSE: WEX) hat die Preisgestaltung und Erhöhung seines Angebots an unbesicherten Senior-Anleihen auf 550 Millionen Dollar bekannt gegeben, was eine Erhöhung um 50 Millionen gegenüber den zuvor angekündigten 500 Millionen Dollar darstellt. Die Anleihen, die 2033 fällig werden, werden einen Zinssatz von 6,500% haben, der halbjährlich gezahlt wird.
Das Unternehmen plant, die Erlöse zusammen mit einem vorgeschlagenen 450 Millionen Dollar zusätzlichen Terminkredit B und vorhandener Liquidität zur Finanzierung von Folgendem zu verwenden:
- Ein Übernahmeangebot zum Kauf von Unternehmensaktien von bis zu 750 Millionen Dollar
- Die Rückzahlung von etwa 250 Millionen Dollar, die unter der revolvierenden Kreditfazilität ausstehen
- Verwandte Gebühren und Ausgaben
Das Angebot wird voraussichtlich am 6. März 2025 abgeschlossen, vorbehaltlich üblicher Bedingungen. Die Anleihen werden von den vollständig im Besitz befindlichen inländischen Tochtergesellschaften von WEX garantiert, die die senior gesicherten Kreditfazilitäten des Unternehmens garantieren.
- Large-scale share repurchase program of $750M indicates strong commitment to shareholder returns
- Successful upsizing of notes offering by $50M shows strong investor demand
- Debt restructuring through notes offering provides longer-term financing stability
- Significant increase in debt load with $550M notes and $450M term loan
- Higher interest expenses with 6.500% rate on new notes
- Substantial cash outflow for share repurchases may limit future strategic flexibility
Insights
WEX has announced a significant financial restructuring with the pricing and upsizing of
The combined proceeds will primarily fund three initiatives: 1) a
This transaction reflects a deliberate capital allocation decision that will likely impact WEX's financial metrics in several ways. The increased debt load will raise interest expenses, potentially affecting near-term profitability, while the share count reduction could provide offsetting benefits to earnings per share. The company's willingness to take on additional debt for share repurchases suggests confidence in its future cash flow generation capabilities to service this higher debt level.
The transaction timing, with expected closing on March 6, 2025, comes amid a period of evolving interest rate expectations. Investors should monitor how this increased leverage affects WEX's financial flexibility and ability to pursue strategic growth opportunities while maintaining appropriate coverage ratios.
The Offering is expected to close on March 6, 2025, subject to the satisfaction of customary closing conditions. The Notes will pay interest on a semi-annual basis.
The Company intends to use the net proceeds of the Offering, together with the net proceeds of borrowings under a proposed new incremental term loan B facility in an aggregate principal amount of
Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities nor shall there be any offer, solicitation or sale of the Notes or any other securities in any state in which such offer, solicitation or sale would be unlawful. The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside
This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Forward-Looking Statements
This press release contains forward-looking statements including, but not limited to, statements about management’s plans, goals and expectations with respect to the Offering and the use of proceeds therefrom. Any statements in this press release that are not statements of historical facts are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “positions,” “confidence,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Forward-looking statements relate to the Company’s future plans, objectives, expectations, and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or performance to be materially different from future results or performance expressed or implied by these forward-looking statements, including the Company’s ability to successfully market and consummate the Offering on the terms described or at all, such that such Offering does not close or is not as successful as it is intended to be, the use of proceeds therefrom, the Company’s ability to successfully market and consummate the Incremental Term Loan B facility on the terms described or at all and the Company’s ability to successfully consummate the Tender Offer on the terms described or at all; as well as other risks and uncertainties identified in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025 and subsequent filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events, or otherwise.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
About WEX
WEX (NYSE: WEX) is the global commerce platform that simplifies the business of running a business. WEX has created a powerful ecosystem that offers seamlessly embedded, personalized solutions for its customers around the world. Through its rich data and specialized expertise in simplifying benefits, reimagining mobility and paying and getting paid, WEX aims to make it easy for companies to overcome complexity and reach their full potential. For more information, please visit www.wexinc.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227872874/en/
News Media:
WEX
Megan Zaroda, 610-379-6211
Megan.Zaroda@wexinc.com
Investor:
WEX
Steve Elder, 207-523-7769
Steve.Elder@wexinc.com
Source: WEX
FAQ
What is the size and interest rate of WEX's new senior unsecured notes offering?
How does WEX plan to use the proceeds from its 2033 notes offering?
When will WEX's $550M senior notes offering close?
What is the total funding package WEX is arranging for its share repurchase program?
