WEX Inc. announced on February 25, 2025, its intention to launch a modified Dutch auction tender offer to purchase up to $750 million worth of common stock. The purchase price range is set between $148 and $170 per share.
Concurrently, WEX announced a proposed private offering of $500 million in aggregate principal amount of new senior unsecured notes due 2033. The company intends to use the net proceeds from this offering, along with borrowings under a new incremental term loan B facility and cash on hand, to fund the tender offer.
The tender offer aims to reduce the number of outstanding shares, potentially increasing earnings per share for remaining shareholders. The debt financing is a strategic move to fund this capital return initiative and repay existing credit facilities.
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