v3.26.3
Financing and Other Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Financing and Other Debt
10.
Financing and Other Debt
The following tables summarize the Company’s total outstanding debt as of September 30, 2026 and December 31, 2025.
As of September 30, 2026As of December 31, 2025
(in millions)
Balance OutstandingInterest RateBalance OutstandingInterest Rate
Short term debt:
Securitized debt (VIEs)$118.8 5.21 %$101.4 4.68 %
Participation debt70.0 6.16 %65.2 5.94 %
FHLB advances1,425.0 4.03 %1,105.0 3.87 %
Borrowed federal funds195.0 3.99 %— — %
Current portion of long-term debt(5)
54.7 **54.7 **
Total short term debt, net$1,863.5 $1,326.4 
**    Provided for the total Credit Agreement borrowings below.
Balance Outstanding at:
(in millions)
September 30, 2026December 31, 2025
Long-term debt:
Credit Agreement:
Term A-1 Loans(1)
$787.5 $821.3 
Term B-2 Loans due April 1, 2028(2)
1,364.0 1,374.4 
Term B-3 Loans due March 6, 2032(2)
443.3 446.6 
Borrowings on Revolving Credit Facility(1)
395.0 428.4 
Total borrowings under the Credit Agreement(3)
2,989.7 3,070.7 
6.500% Senior Notes due March 15, 2033
550.0 550.0 
Total long-term debt(4)
3,539.7 3,620.7 
Less total unamortized debt issuance costs/discounts(27.5)(33.9)
Less current portion of long-term debt(5)
(54.7)(54.7)
Long-term debt, net$3,457.6 $3,532.0 
(1)Bears interest at variable rates, at the Company’s option, plus an applicable margin determined based on the Company’s consolidated leverage ratio. Outstanding borrowings under the Revolving Credit Facility are classified as long-term given they can be rolled forward with interest rate resets through maturity. Note that the maturity date of each of the Term A-1 Loans and Revolving Credit Facility is the earlier of (i) May 10, 2029 and (ii) the date that is 91 days prior to the maturity of the Term B-2 Loans, as further described in the Credit Agreement.
(2)Bears interest at variable rates, at the Company’s option, plus an applicable margin, which is fixed at 0.75 percent for base rate borrowings and 1.75 percent with respect to Term SOFR borrowings.
(3)As of September 30, 2026 and December 31, 2025, amounts outstanding under the Credit Agreement bore a weighted average effective interest rate of 5.6 percent and 5.5 percent, respectively.
(4)See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk for information regarding the fair value of the Company’s debt.
(5)Current portion of long-term debt as of both September 30, 2026 and December 31, 2025, is net of $8.7 million in unamortized debt issuance costs/discounts.
(in millions)
September 30, 2026December 31, 2025
Supplemental information under Credit Agreement:
Letters of credit(1)
$44.5 $44.5 
Remaining borrowing capacity on Revolving Credit Facility(2)
$1,160.5 $1,127.1 
(1)Primarily collateralizing Corporate Payments processing activity.
(2)Total commitments under the Revolving Credit Facility are $1.6 billion as of both September 30, 2026 and December 31, 2025. Borrowing capacity is contingent on maintaining compliance with the financial covenants as defined in the Company’s Credit Agreement. As of September 30, 2026, the Company pays a quarterly commitment fee at a rate per annum ranging from 0.25 percent to 0.45 percent of the daily unused portion of the Revolving Credit Facility determined based on the Company’s consolidated leverage ratio. The quarterly commitment fee in effect as of September 30, 2026 and December 31, 2025, was 0.25 percent and 0.30 percent, respectively.
Securitization Debt (VIEs)
Under securitized debt agreements, each month on a revolving basis, the Company sells certain of its Australian and European receivables to bankruptcy-remote entities that are VIEs consolidated by the Company, which in turn use the receivables as collateral to issue securitized debt. Amounts collected on the securitized receivables, including approximately $7.7 million of cash and cash equivalents as of September 30, 2026, and approximately $7.1 million as of December 31, 2025, are restricted to pay the securitized debt and are not available for general corporate purposes. Additionally, creditors of the VIE do not have financial recourse to WEX Inc. The Company pays interest on the outstanding balance of the securitized debt based on variable interest rates plus an applicable margin.
The Company’s securitized debt agreement for the securitization of its European receivables is with MUFG Bank, Ltd., has a maximum revolving borrowing limit of €55.0 million and expires in April 2027, unless otherwise agreed to in writing by the parties. The Company’s securitized debt facility for the securitization of its Australian receivables is with Australia and New Zealand Banking Group Limited, has a varying borrowing limit by month, ranging from a low of A$100.0 million to a high of A$125.0 million, expires in October 2027, and is annually renewable thereafter unless earlier terminated.
Participation Debt
From time to time, WEX Bank enters into participation agreements with third-party banks to fund customers’ balances that exceed WEX Bank’s lending limit to individual customers. Associated unsecured borrowings generally carry a variable interest rate set according to an applicable reference rate plus a margin, which was 2.25 percent as of both September 30, 2026 and December 31, 2025.
As of September 30, 2026, the Company had an outstanding participation agreement that allows for total borrowings of up to $70.0 million and expires in December 2026, unless otherwise agreed to in writing by the parties. Borrowings under the participation agreement are included in short-term debt given they may be canceled by either party upon 60 days’ advance written notice.
FHLB Advances
WEX Bank is a member of the Federal Home Loan Bank (FHLB) of Des Moines, which provides WEX Bank short-term funding collateralized by investment securities. WEX Bank had $1.4 billion and $1.1 billion of collateralized borrowings outstanding with the FHLB as of September 30, 2026 and December 31, 2025, respectively. Remaining borrowing capacity as of September 30, 2026, was $14.3 million based on collateral provided as of that date.
Borrowed Federal Funds
WEX Bank borrows from short-term uncommitted federal funds lines of credit extended by various financial institutions to supplement the financing of the Company’s accounts receivable. Under these federal funds lines of credit as of September 30, 2026, WEX Bank had $195.0 million in outstanding borrowings, while as of December 31, 2025, WEX had no outstanding borrowings against these lines of credit.
Other Short Term Borrowings
As an additional source of liquidity, as of September 30, 2026, WEX Bank had pledged $306.3 million of its customer receivables to the Federal Reserve Bank as collateral for potential borrowings through the Federal Reserve Bank Discount Window. Amounts that can be borrowed are based on the amount of collateral pledged and were $229.7 million and $151.0 million as of September 30, 2026 and December 31, 2025, respectively. WEX Bank had no borrowings outstanding on this line of credit through the Federal Reserve Bank Discount Window as of September 30, 2026 and December 31, 2025.
Under an uncommitted borrowing facility, WEX Australia can be advanced up to A$21.3 million from Bank of America in short-term funds. Interest accrues on any advances at a rate fixed for each interest period of 1.80 percent above the Australian Bank Bill Buying Rate for that interest period. The Company had no borrowings outstanding on this facility as of September 30, 2026 and December 31, 2025.