FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global
business payments company, today announced that it successfully
closed on an amendment to its pro rata Term Loan A and Revolver A
credit facilities. The transaction was leverage neutral and results
in a $600 million increase in the Company’s capacity under its
facilities. This amendment resulted in an increase to the Company’s
revolver from $1.5 billion to $1.775 billion. In addition, the
Company increased its borrowings under its Term Loan A facility by
$325 million and used those proceeds to paydown its revolver
balance. Interest rate and maturity terms remain consistent with
the existing credit facilities.
FLEETCOR anticipates using the increased debt facility to drive
earnings growth through both M&A and repurchasing FLEETCOR
stock in 2024.
“We’re very pleased with the broad participation and demand for
our credit facility, resulting in $600 million of incremental
liquidity with no change in credit terms,” said Ron Clarke,
chairman and chief executive officer, FLEETCOR Technologies,
Inc.
“These upsized credit facilities are reflective of the high
demand for our credit as a result of our strong balance sheet and
the significant free cash flow the Company consistently generates,”
said Tom Panther, chief financial officer, FLEETCOR Technologies,
Inc.
Bank of America, N.A. is the Administrative Agent and BOFA
Securities, Inc., PNC Capital Markets, LLC, TD Securities (USA)
LLC, and Wells Fargo Securities, LLC, as Joint Lead Arrangers and
Joint Bookrunners Fifth Third Bank, National Association, BMO Bank
N.A., The Bank of Nova Scotia, and Citizens Bank, N.A., as
Co-Documentation Agents Barclays Bank, PLC, Citibank, N.A., and JP
Morgan Chase Bank, N.A. as Co-Managing Agents.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Statements that are not
historical facts, including statements about FLEETCOR’s beliefs,
assumptions, expectations and future performance, are
forward-looking statements. Forward-looking statements can be
identified by the use of words such as “anticipate,” “intend,”
“believe,” “estimate,” “plan,” “seek,” “project” or “expect,”
“may,” “will,” “would,” “could” or “should,” the negative of these
terms or other comparable terminology.
These forward-looking statements are not a guarantee of
performance, and you should not place undue reliance on such
statements. We have based these forward-looking statements largely
on preliminary information, internal estimates and management
assumptions, expectations and plans about future conditions, events
and results. Forward-looking statements are subject to many
uncertainties and other variable circumstances, such as the impact
of macroeconomic conditions, including any recession that has
occurred or may occur in the future, and whether expected trends,
including retail fuel prices, fuel price spreads, fuel transaction
patterns, electric vehicle, and retail lodging price trends develop
as anticipated and we are able to develop successful strategies in
light of these trends; our ability to successfully execute our
strategic plan, manage our growth and achieve our performance
targets; our ability to attract new and retain existing partners,
fuel merchants, and lodging providers, their promotion and support
of our products, and their financial performance; the failure of
management assumptions and estimates, as well as differences in,
and changes to, economic, market, interest rate, interchange fees,
foreign exchange rates, and credit conditions, including changes in
borrowers’ credit risks and payment behaviors; the risk of higher
borrowing costs and adverse financial market conditions impacting
our funding and liquidity, and any reduction in our credit ratings;
our ability to successfully manage our credit risks and the
sufficiency of our allowance for expected credit losses; our
ability to securitize our trade receivables; the occurrence of
fraudulent activity, data breaches or failures of our information
security controls or cybersecurity-related incidents that may
compromise our systems or customers’ information; any disruptions
in the operations of our computer systems and data centers; the
international operational and political risks and compliance and
regulatory risks and costs associated with international
operations; the impact of international conflicts, including
between Russia and Ukraine, as well as within the Middle East, on
the global economy or our business and operations; our ability to
develop and implement new technology, products, and services; any
alleged infringement of intellectual property rights of others and
our ability to protect our intellectual property; the regulation,
supervision, and examination of our business by foreign and
domestic governmental authorities, as well as litigation and
regulatory actions, including the lawsuit filed by the Federal
Trade Commission (FTC); the impact of regulations relating to
privacy, information security and data protection; use of
third-party vendors and ongoing third-party business relationships;
and failure to comply with anti-money laundering (AML) and
anti-terrorism financing laws; changes in our senior management
team and our ability to attract, motivate and retain qualified
personnel consistent with our strategic plan; tax legislation
initiatives or challenges to our tax positions and/or
interpretations, and state sales tax rules and regulations; the
risks of mergers, acquisitions and divestitures, including, without
limitation, the related time and costs of implementing such
transactions, integrating operations as part of these transactions
and possible failures to achieve expected gains, revenue growth
and/or expense savings from such transactions; as well as the other
risks and uncertainties identified under the caption "Risk Factors"
in FLEETCOR's Annual Report on Form 10-K for the year ended
December 31, 2022 filed with the Securities and Exchange Commission
(“SEC”) on February 28, 2023 and subsequent filings with the SEC
made by us. These factors could cause our actual results and
experience to differ materially from any forward-looking statement
made herein. The forward-looking statements included in this press
release are made only as of the date hereof and we do not
undertake, and specifically disclaim, any obligation to update any
such statements as a result of new information, future events or
developments, except as specifically stated or to the extent
required by law. You may access FLEETCOR’s SEC filings for free by
visiting the SEC web site at www.sec.gov.
About FLEETCOR®
FLEETCOR Technologies (NYSE: FLT) is a leading global business
payments company that simplifies the way businesses manage and pay
their expenses. The FLEETCOR portfolio of brands help companies
automate, secure, digitize and control payments on behalf of, their
employees and suppliers. FLEETCOR serves businesses, partners and
merchants in North America, Latin America, Europe, and Asia
Pacific. For more information, please visit www.FLEETCOR.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240207358679/en/
Investor Relations Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
Media Relations Chad Corley, 770-729-5021
Chad.corley@fleetcor.com
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