Warburg Pincus announced today a $400 million dollar investment in WEX, a leading financial technology provider. The investment includes convertible notes in an aggregate principal amount of $310 million and $90 million in common stock. WEX has also obtained an amendment to its existing senior secured credit facilities.
The combination of the investment and the credit agreement amendment will strengthen WEX’s financial profile and will enable the company to remain focused on its strategic initiatives as it navigates the global COVID-19 pandemic.
COVID-19 and WEX’s Financial Distress
WEX has concluded that the Covid-19 pandemic and conditions arising in connection with it have had, and continue to have, a material adverse effect on the business.
According to WEX’s quarter...