New York, July 26, 2024–(BUSINESS WIRE)–American Express Global Business Travel, managed by Global Business Travel Group Inc. (NYSE: GBTG) (“Amex GBT” or the “Company”), a leading software and services company for travel, expense, meetings and events, today announced that it has entered into an amended and restated credit agreement providing for a $1.4 billion senior secured first lien term loan facility due July 26, 2031 and a $360 million senior secured first lien revolving credit facility due July 26, 2029.
Transaction highlights:
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A significant interest margin reduction of approximately 180 bps. The new term loan facility will be priced at Secured Overnight Financing Rate (SOFR) +3.00% (initial issue discount of 99.75%).
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Including refinancing and interest savings already achieved through lower leverage ratios, we expect to realize interest savings of approximately $25 million in 2024 compared to 2023.
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It will strengthen its balance sheet by extending short-term loan maturities to 2031, providing seven years of headroom to align with accelerated cash flow generation.
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Increased the capacity of our revolving credit facility from $50 million to $360 million (currently unused), enhancing our liquidity and flexibility.
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Total debt levels remain unchanged and we remain focused on deleveraging, with a target net debt/adjusted EBITDA leverage ratio of 1.5-2.5x.
The term loan was fully drawn on July 26, 2024, and the proceeds were used to repay in full the principal amount of all term loans and other outstanding indebtedness, including related fees and expenses, under the Company’s existing primary credit facility. The $360 million of available borrowings under the new revolving credit facility may be drawn in the future for working capital needs and other general corporate purposes, subject to customary terms similar to those under the Company’s existing primary credit facility.
Interest on the Term Loan will be calculated based on SOFR plus a margin of 3.00% per annum. Interest on borrowings under the Revolving Credit Facility will be calculated based on SOFR plus a margin of 2.75% per annum.
About American Express Global Business Travel
American Express Global Business Travel is the world’s leading B2B travel platform, providing software and services to manage business travel, expenses, meetings and events for companies of all sizes. We’ve built the most valuable marketplace in B2B travel to offer unmatched choice, value and experiences. With travel professionals in more than 140 countries, our clients and travelers enjoy the powerful support of American Express Global Business Travel.
For more information on Amex GBT, visit amexglobalbusinesstravel.com and follow @amexgbt on Twitter, LinkedIn and Instagram.
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contact address
Investor:
Jennifer Thorrington
Vice President, Investor Relations
investors@amexgbt.com
media:
Martin Ferguson
Vice President, Global Communications and Public Relations
Email: martin.ferguson@amexgbt.com
