American Express Global Business Travel Announces Refinancing of its Existing Credit Facility | GBTG Stock News
American Express Global Business Travel (NYSE: GBTG) has announced a significant refinancing of its credit facility. The new agreement includes a $1,400 million senior secured first lien term loan maturing in 2031 and a $360 million senior secured first lien revolving credit facility maturing in 2029. Key highlights include:
– Interest rate margin reduction of ~180 bps
– Estimated interest savings of ~$25 million in 2024
– Extended term loan maturities to 2031
– Increased revolving credit facility from $50 million to $360 million
– Unchanged total debt level with focus on deleveraging
The refinancing strengthens Amex GBT’s balance sheet, provides increased liquidity, and supports the company’s target leverage ratio of 1.5x – 2.5x Net Debt / Adjusted EBITDA.
American Express Global Business Travel (NYSE: GBTG) ha annunciato un importante rifinanziamento della sua linea di credito. Il nuovo accordo include un prestito garantito senior a lungo termine da 1.400 milioni di dollari che scade nel 2031 e una linea di credito garantita senior revolving da 360 milioni di dollari che scade nel 2029. I punti salienti includono:
– Riduzione del margine di interesse di circa 180 punti base
– Risparmi stimati sugli interessi di circa 25 milioni di dollari nel 2024
– Scadenze del prestito a lungo termine estese fino al 2031
– Incremento della linea di credito revolving da 50 milioni a 360 milioni di dollari
– Livello totale del debito invariato con focus sulla riduzione del leverage
Il rifinanziamento rafforza il bilancio di Amex GBT, fornisce maggiore liquidità e supporta il target di rapporto di indebitamento dell’azienda di 1,5x – 2,5x Debito Netto / EBITDA Adjusted.
American Express Global Business Travel (NYSE: GBTG) ha anunciado un importante refinanciamiento de su línea de crédito. El nuevo acuerdo incluye un préstamo a largo plazo garantizado senior de 1.400 millones de dólares con vencimiento en 2031 y una línea de crédito revolving garantizada senior de 360 millones de dólares con vencimiento en 2029. Los puntos destacados incluyen:
– Reducción del margen de tasa de interés de aproximadamente 180 puntos básicos
– Ahorros estimados en intereses de aproximadamente 25 millones de dólares en 2024
– Plazos de préstamo extendidos hasta 2031
– Aumento de la línea de crédito revolving de 50 millones a 360 millones de dólares
– Nivel total de deuda sin cambios con enfoque en la reducción de apalancamiento
El refinanciamiento fortalece el balance de Amex GBT, proporciona mayor liquidez y apoya el objetivo de relación de apalancamiento de la empresa de 1.5x – 2.5x Deuda Neta / EBITDA Ajustado.
아메리칸 익스프레스 글로벌 비즈니스 트래블(NYSE: GBTG)은 신용 시설의 중요한 재융자를 발표했습니다. 새로운 계약에는 2031년에 만기가 도래하는 14억 달러의 선순위 담보 장기 대출과 2029년에 만기가 도래하는 3억 6천만 달러의 선순위 담보 리볼빙 신용 시설이 포함됩니다. 주요 하이라이트는 다음과 같습니다:
– 약 180bp의 이자율 마진 감소
– 2024년에 약 2천5백만 달러의 이자 비용 절감 예상
– 장기 대출 만기 2031년으로 연장
– 리볼빙 신용 시설을 5천만 달러에서 3억 6천만 달러로 증가
– 부채 총액은 변하지 않으며, 부채 감소에 집중
이번 재융자는 아메리칸 익스프레스 GBT의 재무 상태를 강화하고, 유동성을 높이며, 회사의 목표 레버리지 비율인 1.5배 – 2.5배 순부채 / 조정 EBITDA를 지원합니다.
American Express Global Business Travel (NYSE: GBTG) a annoncé un refinancement significatif de sa facilité de crédit. Le nouvel accord comprend un prêt à long terme senior garanti de 1,4 milliard de dollars arrivant à maturité en 2031 et une facilité de crédit revolving senior garantie de 360 millions de dollars arrivant à maturité en 2029. Les points clés incluent :
– Réduction de la marge d’intérêt d’environ 180 points de base
– Économies d’intérêts estimées à environ 25 millions de dollars en 2024
– Échéances prolongées des prêts à long terme jusqu’en 2031
– Augmentation de la facilité de crédit revolving de 50 millions à 360 millions de dollars
– Niveau total de dette inchangé, avec un accent sur la désendettement
Ce refinancement renforce le bilan d’Amex GBT, offre une liquidité accrue et soutient le ratio d’endettement cible de l’entreprise de 1,5x – 2,5x Dette Nette / EBITDA Ajusté.
American Express Global Business Travel (NYSE: GBTG) hat eine bedeutende Refinanzierung seiner Kreditfazilität angekündigt. Die neue Vereinbarung umfasst ein gesichertes Senior-Darlehen über 1,4 Milliarden Dollar, das im Jahr 2031 fällig wird, und eine gesicherte Senior-Revolvierende Kreditfazilität über 360 Millionen Dollar, die im Jahr 2029 fällig wird. Zu den wichtigsten Highlights gehören:
– Reduzierung der Zinsmargen um ca. 180 Basispunkte
– Geschätzte Zinsersparnisse von ca. 25 Millionen Dollar im Jahr 2024
– Verlängerte Fälligkeiten des Termindarlehens bis 2031
– Erhöhung der revolvierenden Kreditfazilität von 50 Millionen auf 360 Millionen Dollar
– Unverändertes Gesamtschuldenniveau mit Fokus auf Schuldenabbau
Die Refinanzierung stärkt die Bilanz von Amex GBT, bietet erhöhte Liquidität und unterstützt das Zielverhältnis der Unternehmensverschuldung von 1,5x – 2,5x Netto-Schulden / Bereinigtes EBITDA.
Positive
- Interest rate margin reduction of approximately 180 basis points
- Estimated interest savings of $25 million in 2024
- Extended term loan maturities to 2031, providing seven years of runway
- Increased revolving credit facility capacity from $50 million to $360 million
- Strengthened balance sheet and increased liquidity
American Express Global Business Travel’s refinancing of its credit facility marks a significant improvement in its financial position. The 180 basis point reduction in interest rate margin is substantial, translating to an estimated
The extension of the term loan maturity to 2031 provides GBTG with a seven-year runway, which is important as the company anticipates accelerated cash flow generation. This extended timeline offers stability and reduces near-term refinancing risks, allowing management to focus on strategic initiatives and growth opportunities.
The upsizing of the revolving credit facility from
While the total debt level remains unchanged, GBTG’s focus on deleveraging with a target leverage ratio of 1.5x – 2.5x Net Debt / Adjusted EBITDA indicates a commitment to maintaining a healthy balance sheet. This conservative approach, coupled with the improved terms of the new facility, positions the company well for future growth and potential market volatility.
Overall, this refinancing represents a strategic win for American Express Global Business Travel, potentially improving investor confidence and setting the stage for enhanced financial performance in the coming years.
The refinancing of American Express Global Business Travel’s credit facility offers intriguing insights into both the company’s position and broader market trends. The ability to secure such favorable terms – particularly the 180 basis point reduction in interest rate margin – suggests a significant improvement in GBTG’s credit profile and/or a notably accommodative lending environment.
This move comes at a time when the travel industry is experiencing a robust recovery post-pandemic. The company’s confidence in accelerating cash flow generation aligns with industry projections of continued growth in business travel. However, it’s important to note that this sector remains sensitive to economic fluctuations and geopolitical events.
The substantial increase in the revolving credit facility, from
The company’s target leverage ratio of 1.5x – 2.5x Net Debt / Adjusted EBITDA is in line with industry norms for stable, mature companies. This conservative approach to leverage, combined with the improved credit terms, positions GBTG favorably compared to competitors who may be carrying heavier debt loads.
Investors should watch for how GBTG utilizes this enhanced financial flexibility. Will it lead to increased market share, technological investments, or potential M&A activity? The company’s strategic decisions in the coming months could provide valuable indicators of its long-term growth trajectory and the overall health of the business travel sector.
American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the “Company”), a leading software and services company for travel, expense, and meetings and events, today announced that it entered into an amended and restated credit agreement, which provides for a principal amount of
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). -
Delivering estimated interest savings of approximately
$25 million - Strengthens balance sheet by extending near-term term loan maturities to 2031, providing seven years of runway as cash flow generation accelerates.
-
Upsized revolving credit facility capacity from
$50 million $360 million - 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 July 26, 2024, and the proceeds were used to repay in full the principal amount of all term loans and other outstanding obligations (including related fees and expenses) under the Company’s previously existing principal credit facility. The
The term loans bear interest based on SOFR, plus a margin of
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 travel, expenses, and meetings & events for companies of all sizes. We have built the most valuable marketplace in B2B travel to deliver unrivalled choice, value and experiences. With travel professionals in more than 140 countries, our customers and travelers enjoy the powerful backing of American Express Global Business Travel.
Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on Twitter, LinkedIn and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240726242175/en/
Investors:
Jennifer Thorington
Vice President Investor Relations
investor@amexgbt.com
Media:
Martin Ferguson
Vice President Global Communications and Public Affairs
martin.ferguson@amexgbt.com
Source: Global Business Travel Group, Inc.
FAQ
What is the new credit facility amount for American Express Global Business Travel (GBTG)?
The new credit facility for American Express Global Business Travel (GBTG) includes a $1,400 million senior secured first lien term loan facility and a $360 million senior secured first lien revolving credit facility.
How much interest savings is GBTG expecting from the refinancing in 2024?
American Express Global Business Travel (GBTG) is expecting estimated interest savings of approximately $25 million in 2024 compared to 2023, including the refinancing and previously achieved interest savings from lowered leverage ratio.
What is the new maturity date for GBTG’s term loan facility?
The new maturity date for American Express Global Business Travel’s (GBTG) term loan facility is July 26, 2031.
How has GBTG’s revolving credit facility capacity changed with the refinancing?
American Express Global Business Travel’s (GBTG) revolving credit facility capacity has increased from $50 million to $360 million with the refinancing.
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