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Financing and Other Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Financing and Other Debt
10.Financing and Other Debt
The following tables summarize the Company’s total outstanding debt as of June 30, 2023 and December 31, 2022.
As of June 30, 2023As of December 31, 2022
(In millions)Balance OutstandingInterest RateBalance OutstandingInterest Rate
Short term debt:
Securitized debt$95.9 5.36 %$110.6 3.83 %
Participation debt53.9 7.48 %39.0 6.64 %
Borrowed federal funds520.2 5.39 %— — %
Current portion of long-term debt (net of $10.3 million in unamortized debt issuance costs/discounts)
53.0 **53.1 **
Total short term debt, net$723.0 $202.6 

** Provided for the total Amended and Restated Credit Agreement borrowings below.

Balance Outstanding at:
(In millions)June 30, 2023December 31, 2022
Long-term debt:
Amended and Restated Credit Agreement:
Tranche A Term Loans due April 20261
$868.4 $892.8 
Tranche B Term Loans due April 20282
1,409.5 1,416.8 
Borrowings on Revolving Credit Facility due April 20261
4.0 — 
Total borrowings under the Amended and Restated Credit Agreement3
2,281.9 2,309.6 
6.5% Convertible Notes due July 2027
310.0 310.0 
Total long-term debt4
2,591.9 2,619.6 
Less total unamortized debt issuance costs/discounts(39.8)(44.3)
Less current portion of long-term debt (net of 10.3 million in unamortized debt issuance costs/discounts)
(53.0)(53.1)
Long-term debt, net$2,499.1 $2,522.2 

1 Bears interest at variable rates, at the Company’s option, plus an applicable margin determined based on the Company’s consolidated leverage ratio. Borrowings under the Revolving Credit Facility are classified as long-term given they can generally be rolled forward with interest rate resets through maturity.
2 Bears interest at variable rates, at the Company’s option, plus an applicable margin, which is fixed at 1.25 percent for base rate borrowings and 2.25 percent with respect to Term SOFR borrowings.
3 As of June 30, 2023 and December 31, 2022, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 7.3 percent and 6.4 percent, respectively. The Company maintains interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. See Note 8, Derivative Instruments for further discussion.
4 See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk for information regarding the fair value of the Company’s debt.

(In millions)June 30, 2023December 31, 2022
Supplemental information under Amended and Restated Credit Agreement:
Letters of credit1
$33.1 $31.1 
Remaining borrowing capacity on Revolving Credit Facility2
$892.9 $898.9 
1 Primarily collateralizing Corporate Payments processing activity.
2 Contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. The Company pays a quarterly commitment fee at a rate per annum ranging from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.30 percent at both June 30, 2023 and December 31, 2022) determined based on the Company’s consolidated leverage ratio.

Amended and Restated Credit Agreement
As part of the Amended and Restated Credit Agreement, we have senior secured tranche A term loans (the “Tranche A Term Loans”), senior secured tranche B term loans (the “Tranche B Term Loans”) and revolving credit commitments in an aggregate amount of $930.0 million under the Company’s secured revolving credit facility (the “Revolving Credit Facility”).
On April 24, 2023, the Company’s Amended and Restated Credit Agreement was further amended solely for the purpose of replacing the current reference rate with the USD LIBOR successor rate, SOFR (including an applicable credit spread adjustment). No other substantive changes were made to the Amended and Restated Credit Agreement as part of this amendment.
Convertible Notes

The Company has issued Convertible Notes to an affiliate of Warburg Pincus LLC (together with its affiliate, “Warburg Pincus”). For additional information regarding the Company’s Convertible Notes, including their conversion, redemption and settlement features, see Part II - Item 8 - Note 16, Financing and Other Debt, in our Annual Report on Form 10-K for the year ended December 31, 2022.

As of both June 30, 2023 and December 31, 2022, the Convertible Notes had an effective interest rate of 7.5 percent. As of June 30, 2023 and December 31, 2022, unamortized debt issuance costs and debt discount were $11.4 million and $12.7 million, respectively. The following table sets forth total interest expense recognized for the Convertible Notes:
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2023202220232022
Interest on 6.5 percent coupon
$5.0 $5.0 $10.1 $10.1 
Amortization of debt discount and debt issuance costs0.6 0.6 1.2 1.1 
$5.6 $5.6 $11.3 $11.2 

Debt Securitization Facilities

The Company is party to two securitized debt agreements with MUFG Bank, Ltd., both through April 2024. Under the terms of these agreements, each month on a revolving basis, the Company sells certain of its Australian and European receivables to bankruptcy-remote subsidiaries consolidated by the Company, which in turn use the receivables as collateral to issue securitized debt. Amounts collected on the securitized receivables are restricted to pay the securitized debt and are not available for general corporate purposes. The Company pays interest on the outstanding balance of the securitized debt based on variable interest rates plus an applicable margin.

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 ranged from 2.25 percent to 2.50 percent as of June 30, 2023 and December 31, 2022. As of June 30, 2023, the Company had three outstanding participation agreements totaling $70.0 million, which expire at various points up to May 2024, unless otherwise agreed to in writing by the parties.     

Borrowed Federal Funds
WEX Bank borrows from short-term uncommitted federal funds lines to supplement the financing of the Company’s accounts receivable. WEX Bank had $20.0 million in outstanding borrowings under these federal funds lines of credit as of June 30, 2023 and no borrowings as of December 31, 2022.
As of June 30, 2023, WEX Bank had $500.0 million in outstanding borrowings from the Federal Reserve’s Bank Term Funding Program (BTFP). The borrowing is due in June of 2024 with an interest rate of 5.39%. At June 30, 2023, debt securities with a par value of $575.1 million and fair value of $518.4 million were pledged as collateral.
As of June 30, 2023, WEX Bank pledged $236.2 million of fleet customer receivables held by WEX Bank 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 was $182.2 million as of June 30, 2023. WEX Bank had no borrowings outstanding on this line of credit through the Federal Reserve Bank Discount Window as of June 30, 2023 and December 31, 2022.