Corpay Completes Refinancing and Increases Revolving Credit Facility To $3.7 Billion
Corpay Completes Refinancing and Increases Revolving Credit Facility To $3.7 Billion
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revolving credit facilityfinancial
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
term loan afinancial
Term Loan A is a portion of a company’s syndicated bank loan that is paid down with regular principal installments over a set period, usually carries lower interest and a shorter maturity than other loan tranches. It matters to investors because its scheduled repayments and interest cost affect a company’s cash flow and borrowing needs; heavy near‑term payments can reduce cash available for dividends, investment or increase refinancing risk, much like a mortgage with larger monthly payments limits household flexibility.
term loan bfinancial
A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.
basis pointsfinancial
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
administrative agentfinancial
An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.
joint lead arrangersfinancial
Joint lead arrangers are the banks or financial institutions that organize a large loan provided by a group of lenders, acting like co-captains who design the deal, find other lenders, and set key terms. For investors, their involvement matters because their reputation, negotiating strength and risk appetite influence the cost, size, and protections of the financing, which can affect a company’s cash flow and credit risk.
joint bookrunnersfinancial
Joint bookrunners are the lead banks or brokers who share responsibility for organizing and selling a new offering of securities, like shares or bonds. Think of them as co-hosts of a big sale who coordinate pricing, gather investor interest (the “order book”), and split the work and risk—investors watch who the joint bookrunners are because their reputation and effort influence how smoothly the deal is priced, how widely it’s distributed, and how likely it is to succeed.
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ATLANTA--(BUSINESS WIRE)--
Corpay, Inc. (NYSE: CPAY), the corporate payments and expense management company today announced that it closed an amendment to increase its revolving credit facility by $925 million to $3.7 billion and increase its Term Loan A by $420M to $3.3 billion, both for new 5-year terms. The USD interest rates are 10 basis points lower than the existing facilities.
The Company plans to use $1 billion of the proceeds to pay down a portion of its Term Loan B and refinance a portion of its Term Loan B, resulting in a $2.9 billion Term Loan B, maturing in November 2032. This will also result in lower annual interest expense.
“We’re very pleased to upsize and extend our credit facilities,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc. “This is a reflection of the durability of Corpay’s earnings power, and these amended facilities provide us additional liquidity to grow the business.”
“Our debt facility continues to price at very attractive levels, and will result in interest expense savings for the extended term,” said Peter Walker, chief financial officer, Corpay, Inc. “We’re very appreciative of our bank partners stepping up to support this upsized credit facility.”
Bank of America, N.A. is the Administrative Agent and BofA Securities, Inc., PNC Bank, National Association J.P. Morgan Chase Bank, N.A, Barclays Bank, PLC, TD Securities (USA) LLC., Wells Fargo Securities, LLC, and BMO Capital Markets Corp., served as Joint Lead Arrangers and Joint Bookrunners. The Bank of Nova Scotia, Capital One, National Association, Citizens Bank, N.A., Fifth Third Bank National Association, Industrial and Commercial Bank of China Limited, New York Branch, Keybanc Capital Markets PLC, Mizuho Bank, LTD. Truist Securities, Inc. and Royal Bank of Canada as joint lead arrangers.
About Corpay
Corpay (NYSE: CPAY), the Corporate Payments and Expense Management Company, is a global S&P 500 provider of employee payments (e.g, spend management solutions, fleet cards, and virtual cards) B2B vendor payments (e.g., invoice and payments automation), and cross-border solutions (fx payments, risk management solutions and global bank accounts) to businesses worldwide. Corpay solutions “keep business moving” and result in our customers better controlling business expenses, mitigating fraud, and ultimately spending less. To learn more visit www.corpay.com
