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WEX $400M high-yield bonds price tight to talk, at par, to yield 4.75%; terms

WEX today completed an offering of senior notes via bookrunners Wells Fargo, Bank of America, SunTrust, and RBS, according to sources. Demand for the deal allowed for pricing at the tight end of guidance after a $50 million upsizing. Proceeds from the debut offering will be used to partially repay borrowings outstanding under the company’s senior credit facility and for general corporate purposes. In addition, WEX recently boosted the size of its TLA to $300 million, from $185 million, and increased the size of its revolver by $100 million, to $800 million via an amendment, according to a regulatory filing. Loan maturities were also extended, to 2018, from 2016. WEX, formerly known as Wright Express, provides business payment processing and information management services in North America, the Asia Pacific, and Europe. Terms:

 

Issuer WEX Inc.
Ratings BB/Ba3
Amount $400 million
Issue senior notes (144A life)
Coupon 4.75%
Price 100
Yield 4.75%
Spread T+283
FRN eq. L+277
Maturity Feb. 1, 2023
Call nc5
Trade Jan. 25, 2013
Settle Jan. 30, 2013
Joint Bookrunners WF/BAML/Sun/RBS
Co-Leads
Co’s. BMO,Key,BTM,SMBC
Px talk 4.75-5%
Notes w/ three-year equity clawback for 35% @ 104.75; upsized by $50 million.

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