Corpay Inc. Secures Major Refinancing and Expands Credit Facilities

Corpay has increased its revolving credit facility by $925 million, bringing the total to an impressive $3.7 billion. Additionally, the company has augmented its Term Loan A by $420 million, raising it to $3.3 billion. Notably, both credit facilities come with new five-year terms, presenting a favorable opportunity for the company amid a competitive lending landscape.

The adjustment in interest rates is equally noteworthy; the new USD interest rates are set at 10 basis points lower than the previous facilities. This change is anticipated to result in substantial annual interest expense savings, further enhancing Corpay’s financial position.

Corpay plans to allocate $1 billion of the proceeds from this refinancing initiative to pay down and refinance a portion of its Term Loan B. Following this adjustment, the Term Loan B will amount to $2.9 billion, maturing in November 2032. This refinancing strategy not only extends the maturity but also contributes to lowering the overall interest burden.

Ron Clarke, Chairman and CEO of Corpay, expressed his satisfaction with the completion of the refinancing, stating, “We’re very pleased to upsize and extend our credit facilities. This is a reflection of the durability of Corpay’s earnings power, and these amended facilities provide us additional liquidity to grow the business.” His comments underscore the management's confidence in the company's financial resilience and future prospects.

Peter Walker, CFO of Corpay, echoed this sentiment, remarking on the advantageous pricing of their debt facilities. He noted, “Our debt facility continues to price at very attractive levels, and will result in interest expense savings for the extended term. We’re very appreciative of our bank partners stepping up to support this upsized credit facility.” Walker’s remarks highlight the strong relationships Corpay has cultivated with its banking partners, which have been instrumental in securing favorable financing terms.

The successful refinancing was facilitated by several prominent financial institutions. Bank of America, N.A. served as the Administrative Agent, while 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. acted as Joint Lead Arrangers and Joint Bookrunners. Additional support was provided by 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.

Corpay is a global S&P 500 company specializing in corporate payments and expense management solutions. Its offerings include employee payments, B2B vendor payments, and cross-border solutions, aimed at helping businesses worldwide manage expenses effectively, mitigate fraud, and enhance operational efficiency. The company’s mission to “keep business moving” resonates through its innovative solutions that empower clients to control costs better and optimize spending.

As Corpay moves forward with this expanded credit facility, the company is well-positioned to capitalize on growth opportunities while maintaining a strong financial footing. The strategic refinancing not only reflects confidence in its earnings potential but also illustrates the company’s commitment to achieving long-term objectives in the evolving corporate payments landscape.