WEX Inc. Enters Material Agreement, Creates New Financial Obligation

TL;DR

**WEX Inc. just took on a new major financial obligation, watch for details on its impact.**

AI Summary

WEX Inc. filed an 8-K on January 25, 2024, reporting an event that occurred on January 22, 2024, concerning the entry into a material definitive agreement and the creation of a direct financial obligation. This filing indicates WEX Inc. has undertaken a significant new financial commitment, which could impact its future financial performance and leverage. Investors should pay attention to the details of this agreement as it could affect the company's risk profile and profitability.

Why It Matters

This filing signals a new financial commitment for WEX Inc., which could alter its debt levels, cash flow, and overall financial health, directly impacting shareholder value.

Risk Assessment

Risk Level: medium — The creation of a direct financial obligation introduces new liabilities and potential interest expenses, increasing the company's financial risk.

Analyst Insight

A smart investor would await further details on the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess their specific terms, size, and potential impact on WEX Inc.'s balance sheet and future profitability before making investment decisions.

Key Players & Entities

• WEX Inc. (company) — the registrant filing the 8-K
• January 22, 2024 (date) — date of the earliest event reported
• January 25, 2024 (date) — date the 8-K was filed
• Delaware (company) — state of incorporation for WEX Inc.
• 001-32426 (company) — Commission File Number for WEX Inc.

Forward-Looking Statements

• WEX Inc.'s debt-to-equity ratio will increase in the next quarter due to the new financial obligation. (WEX Inc.) — medium confidence, target: Q1 2024 earnings report
• Further details regarding the 'Material Definitive Agreement' will be disclosed in subsequent filings or earnings calls. (WEX Inc.) — high confidence, target: Next earnings call or 10-K/10-Q filing

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value WEX New York Stock Exchange
• $1.4 billion — to reprice the Company's approximately $1.4 billion of existing tranche B term loans, in co

Filing Documents

• wex-20240122.htm (8-K) — 31KB
• exhibit101wex-fourthamendm.htm (EX-10.1) — 1787KB
• wex-20240122_g1.jpg (GRAPHIC) — 4KB
• 0001309108-24-000013.txt ( ) — 2281KB
• wex-20240122.xsd (EX-101.SCH) — 2KB
• wex-20240122_def.xml (EX-101.DEF) — 16KB
• wex-20240122_lab.xml (EX-101.LAB) — 29KB
• wex-20240122_pre.xml (EX-101.PRE) — 16KB
• wex-20240122_htm.xml (XML) — 3KB

01 Entry Into a Material Definitive Agreement

Item 1.01 Entry Into a Material Definitive Agreement. On January 22, 2024, WEX Inc. (the "Company") and certain of its subsidiaries entered into the Fourth Amendment to Amended and Restated Credit Agreement (the "Fourth Amendment"), which amends that certain Amended and Restated Credit Agreement, dated as of April 1, 2021, by and among the Company and certain of its subsidiaries identified therein, the lenders party thereto from time to time, and Bank of America, N.A., as administrative agent on behalf of the lenders (as amended by the First Amendment to Amended and Restated Credit Agreement dated April 24, 2023, the Second Amendment to Amended and Restated Credit Agreement dated August 10, 2023, the Third Amendment to Amended and Restated Credit Agreement dated September 26, 2023, and as otherwise amended, restated, amended and restated, supplemented or otherwise modified prior to January 22, 2024, the "Existing Credit Agreement" and, as amended by the Fourth Amendment, the "Amended Credit Agreement"). The Fourth Amendment, amends certain terms of the Existing Credit Agreement, including without limitation, to reprice the Company's approximately $1.4 billion of existing tranche B term loans, in connection with the issuance of new tranche B term loans in the same amount. The Fourth Amendment reduces the applicable interest rate margin for tranche B term loans from 1.25% to 1.00% for base rate borrowings and 2.25% to 2.00% for term SOFR borrowings and removes the credit spread adjustment applicable to tranche B term loans which are SOFR borrowings. All other terms and provisions of the Amended Credit Agreement remain substantially the same as the Existing Credit Agreement. From time to time, certain parties to the Amended Credit Agreement, and affiliates of those parties, have provided, and may in the future provide banking, investment banking, and other financial services to the Company or the Company's affiliates. Such parties have received, or may in the futu

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (c) See attached Exhibit Index. EXHIBIT INDEX Exhibit No. Description 10.1 Fourth Amendment to Amended and Restated Credit Agreement, dated January 22, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WEX INC. Date: January 25, 2024 By: /s/ Jagtar Narula Jagtar Narula Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR