American Express Global Business Travel Announces Refinancing of its Existing Credit Facility
Transaction Highlights:
- Significant interest rate margin reduction of approximately 180 bps, with the new term loan facility priced at secured overnight financing rate (SOFR) +3.00% (99.75 original issue discount).
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Delivering estimated interest savings of approximately
$25 million in 2024 versus 2023, including the refinancing and previously achieved interest savings from lowered leverage ratio. - Strengthens balance sheet by extending near-term term loan maturities to 2031, providing seven years of runway as cash flow generation accelerates.
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Upsized revolving credit facility capacity from
$50 million to$360 million (currently undrawn), providing the Company with increased liquidity and flexibility. - Total debt level unchanged, and focus remains on continued deleveraging, with target leverage ratio of 1.5x – 2.5x Net Debt / Adjusted EBITDA.
The term loans were drawn in full on
The term loans bear interest based on SOFR, plus a margin of 3.00% per annum. Borrowings under the revolving credit facility are subject to interest based on SOFR, plus a margin of 2.75% per annum.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240726242175/en/
Investors:
Vice President Investor Relations
investor@amexgbt.com
Media:
Vice President Global Communications and Public Affairs
martin.ferguson@amexgbt.com
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