WEX secures $400 million funding from Warburg Pincus
WEX, the US-based payment processing company, has received $400 million investment from Warburg Pincus. This includes convertible notes in aggregate principal amount of $310 million and other $90 million in common stock through a private placement.
The company says this investment will help the company’s profile by strengthening it, and will enable the company to remain focused on its initiatives as it navigates from the global Covid-19 pandemic.
“We are pleased to further fortify our balance sheet during the current uncertain operating environment while reaffirming our relationship with Warburg Pincus, who has demonstrated their strong commitment to the future growth of WEX,” said Melissa Smith, Chief Executive Officer at WEX.
Warburg is buying 577,254 shares of WEX common stock, which is almost $90 million or $155 per share. The company will hold 4.7% of WEX’s common stock.
Adding further, Smith said, “The combination of this investment and the recent credit agreement amendment put us in an even stronger financial position with additional financial flexibility, improved liquidity and increased cash on hand. This better positions us to remain focused on our long-term strategic initiatives to drive our future success, and capitalize on the economic recovery when market conditions improve.”
WEX has also increased its credit facility and also amended to its existing senior secured credit facilities.