Travel + Leisure Co. Enhances Financial Stability with New Loan

Travel + Leisure Co. Strengthens Financial Position with New Loan

Travel + Leisure Co. has made a significant move in enhancing its financial structure by successfully closing an $875 million incremental term loan, known as the 2024 Term Loan B Facility. This strategic decision comes at a time of favorable market conditions, allowing the company to reposition its borrowings and better manage its debt obligations.

Details of the Term Loan B Facility

The newly established 2024 Term Loan B Facility is set to mature on December 14, 2029, and it is priced competitively at SOFR plus 250 basis points at par. This refinance replaces the previous $593 million outstanding borrowings under the 2023 incremental term loan B facility. Additionally, it takes over the $282 million outstanding under the 2018 term loan B facility, which was initially due on May 31, 2025.

Company's Positive Outlook

Mike Hug, the Chief Financial Officer of Travel + Leisure Co., expressed enthusiasm regarding the transaction, stating, "We are very pleased with the transaction results. The continued strength of Travel + Leisure Co.’s business allowed us to capitalize on favorable market conditions and successfully refinance and reprice our term loan B facilities. Solid investor demand enabled us to extend the maturity date for our $282 million term loan due May 2025 and achieve annual interest savings of nearly $5 million with no original issue discount for the overall transaction." This reflects the company’s commitment to maintaining financial agility while navigating the complexities of the travel industry.

The Company’s Mission and Offerings

Travel + Leisure Co. (NYSE: TNL) stands as a leader in the leisure travel and membership sector, delivering over six million vacation experiences annually. The company has a diverse portfolio that includes vacation ownership, travel clubs, and lifestyle travel brands tailored to meet modern traveler needs. With nearly 19,000 dedicated associates worldwide, the company pursues its mission to enable travelers to enjoy vacations globally, while emphasizing hospitality and responsible tourism.

Commitment to Responsible Tourism

At the heart of Travel + Leisure Co.'s operations is a focus on responsible tourism. This commitment is reflected in their practices and initiatives that aim to minimize environmental impact while maximizing the enjoyment and satisfaction of their clients. The company continually works towards sustaining the regions they operate in, ensuring that tourism benefits local communities and ecosystems.

Continuous Improvement and Growth

Innovation and improvement are crucial components of Travel + Leisure Co.'s growth strategy. By analyzing market trends and traveler preferences, the company adapts its offerings to meet evolving demands. This proactive approach not only helps the company stay competitive but also enriches the experiences offered to customers.

Frequently Asked Questions

What recent financial transaction did Travel + Leisure Co. complete?

Travel + Leisure Co. successfully executed an $875 million incremental term loan to refinance previous debts and improve financial stability.

How does the new term loan affect the company's financial strategy?

The new term loan allows for extended maturity and reduces interest expenses, thereby enhancing the company’s financial flexibility for future operations.

What is the maturity date for the 2024 Term Loan B Facility?

The 2024 Term Loan B Facility matures on December 14, 2029.

How many vacations does Travel + Leisure Co. provide annually?

Travel + Leisure Co. provides over six million vacations to travelers every year.

What is the company’s stance on responsible tourism?

Travel + Leisure Co. is committed to responsible tourism, focusing on minimizing environmental impacts while maximizing traveler satisfaction and benefiting local communities.

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