8-KMaterial AgreementsExhibits & Filings

CORPAY, INC. 8-K Report, Material Agreement (Oct 6, 2011)

Filed October 6, 2011For Securities:CPAY

Summary

FleetCor Technologies, Inc. (now Corpay, Inc.) filed an 8-K on October 6, 2011, to report a material definitive agreement. Specifically, subsidiaries of the company entered into a sixth amendment to their receivables purchase agreement, known as the Securitization Facility. This amendment, dated September 30, 2011, allows the company to sell receivables and repay purchasers on a non-ratable basis, which is intended to leverage lower-cost capital from certain purchasers. The primary impact for investors is the continued operational flexibility and potential for improved capital efficiency. The amendment maintains the existing $500 million purchase limit under the Securitization Facility. This filing indicates ongoing management attention to optimizing financing arrangements to support the company's operations and growth. The company also clarified that beyond standard commercial banking relationships with PNC Bank, National Association, there are no other material relationships with the parties involved in this agreement.

Key Highlights

  • 1FleetCor Technologies, Inc. (now Corpay, Inc.) amended its Securitization Facility on September 30, 2011.
  • 2The sixth amendment allows for non-ratable sales of receivables and repayments to purchasers.
  • 3This change is intended to capitalize on lower-cost financing options from specific purchasers.
  • 4The total purchase limit under the Securitization Facility remains at $500 million.
  • 5The amendment aims to enhance capital efficiency and financing flexibility.
  • 6The company affirmed limited material relationships with parties to the agreement, excluding PNC Bank.
  • 7The filing was made on October 6, 2011, as an 8-K report.

Frequently Asked Questions

The main purpose of the sixth amendment is to allow FleetCor to sell receivables and repay purchasers on a non-ratable basis. This flexibility is designed to enable the company to take advantage of lower cost of capital from certain purchasers, thereby optimizing its financing costs.

No, the amendment does not change the total purchase limit under the Securitization Facility. The current limit remains at $500 million.

The filing states that except for standard commercial banking relationships with PNC Bank, National Association, FleetCor and its affiliates do not have any other material relationships with the parties to the Securitization Facility.

A receivables purchase agreement is a financial contract where a company sells its accounts receivable (money owed by customers) to a third party, usually a financial institution, often at a discount. A Securitization Facility is a type of financing where a company, or a subsidiary, pools its assets (like receivables) and sells them to a special purpose entity, which then issues securities backed by those assets to investors. This allows the company to raise funds.