8-KMaterial AgreementsFinancial EventsExhibits & Filings

CORPAY, INC. 8-K Report, Material Agreement (Jun 24, 2011)

Filed June 24, 2011For Securities:CPAY

Summary

FleetCor Technologies, Inc. (now Corpay, Inc.) announced on June 24, 2011, the execution of a new five-year, $900 million Credit Agreement dated June 22, 2011. This new facility, with Bank of America, N.A. as the administrative agent, includes a $300 million term loan and a $600 million revolving credit facility, with an option to increase by an additional $150 million. The proceeds from this agreement were primarily used to refinance existing debt under the Company's 2005 Credit Facility and its CCS Credit Facility. This refinancing strengthens FleetCor's balance sheet and provides enhanced financial flexibility. The new credit agreement includes standard covenants, such as limitations on restricted payments and financial ratio compliance. Additionally, the company amended its securitization facility with PNC Bank, National Association, removing certain reporting and financial covenant requirements, further streamlining its financing arrangements. This strategic move is aimed at supporting the company's ongoing operational needs, potential acquisitions, and general corporate purposes.

Key Highlights

  • 1Execution of a new five-year, $900 million Credit Agreement by FleetCor Technologies, Inc. on June 22, 2011.
  • 2The Credit Agreement features a $300 million term loan and a $600 million revolving credit facility, with an option to increase by $150 million.
  • 3Proceeds were used to refinance existing indebtedness under the 2005 Credit Facility and the CCS Credit Facility.
  • 4The facility includes provisions for letters of credit, swing line loans, and multicurrency borrowings.
  • 5Customary covenants such as restrictions on dividends and financial ratio compliance are included.
  • 6Amendment to the Securitization Facility with PNC Bank removed compliance certification and financial covenant requirements.
  • 7The Company's obligations are guaranteed by the parent company and secured by a pledge of shares of certain subsidiaries.

Frequently Asked Questions

The primary purpose of the new $900 million Credit Agreement is to refinance the Company's existing indebtedness under its 2005 Credit Facility and CCS Credit Facility. It also provides funds for working capital, acquisitions, and other general corporate purposes, offering greater financial flexibility.

The Credit Agreement provides for a $300 million term loan facility and a $600 million revolving credit facility. It also includes sublimits for letters of credit, swing line loans, and multicurrency borrowings. The Company has the option to increase the total facility size by an additional $150 million, subject to certain conditions.

This new financing replaces the company's previous credit facilities (2005 Facility and CCS Facility), effectively consolidating and potentially improving the terms of its outstanding debt. The refinancing aims to streamline debt management and provide a more robust financing foundation.

Yes, the fifth amendment to the Securitization Facility removed certain requirements, including the compliance certification reporting and financial covenant requirements. This amendment, along with an amended Performance Guaranty that removes restrictions on acquisitions, suggests a move towards greater operational and financial flexibility.