FleetCor Technologies Inc.'s board has authorized an increase in the size of a previously announced share repurchase program by $250 million.
The program was also extended by 18 months. With the increase, and including $240 million in previous repurchases, the company can buy back up to $510 million in shares at any time prior to Feb. 1, 2019.
The company agreed to an accelerated share repurchase program with Bank of America NA to repurchase $250 million of common stock. The company expects to fund the repurchase with a combination of debt and cash. FleetCor expects about 85% of the shares to be bought back to be received Aug. 8, and anticipates that all the repurchases will be completed by the end of the third quarter.
FleetCor separately announced an upsizing of its senior secured credit facilities by about $709 million and a change of certain maturity dates. The lenders agreed to an amendment that increased the term A loan to $2.69 billion, increased the revolver loans to about $1.29 billion and increased the term B loan to $350.0 million.
The maturity dates for the term A loan and the revolver are now Aug. 2, 2022. Their pricing remains the same.
The term B loan's maturity date is now Aug. 2, 2024, and the pricing was reduced by 25 basis points to London Interbank Offered Rate plus 200 basis points.