CWT to Recapitalize Business

CWT has entered into an agreement with financial stakeholders representing over 90% of the company’s outstanding debt to recapitalize the business.

Key terms of the agreement, entered into with financial stakeholder Barings LLC, among others, include:

- Adding $350 million of new equity capital into the business;

- Eliminating almost $900 million of debt by replacing CWT’s existing $1.5 billion in debt with new first lien debt of $625 million issued at market rates and new undrawn revolving credit facility;

- Providing CWT with substantial long-term liquidity through the resulting balance sheet cash and new revolving credit facility; and

- Providing for all business partners and other providers of goods and services to CWT to be paid in full.

CWT expects to begin soliciting formal approval of the plan from its existing financial stakeholders in the next few weeks and to finalize implementation of the plan later this year.

“This is great news for CWT and our stakeholders, highlighting the progress we have made to position CWT for long-term success and providing significant financial resources to further grow and develop our business,” said Michelle McKinney Frymire, CWT’s Chief Executive Officer. “This is an important and exciting time for travel, as the industry is seeing meaningful increases in demand for the first time since the start of the pandemic. As we ramp up operational capacity to continue serving our customers through the recovery, we are continuing to advance our strategic objectives, including driving innovation and delivering industry-leading solutions. We are pleased to be moving ahead with overwhelming support from our financial partners, who will become CWT’s new majority owners, underscoring their confidence in the market, CWT and our strategy and services.”

CWT has used the period of COVID-related travel restrictions and related demand reductions to accelerate many of its strategic development plans and investments across its innovative products, program delivery and travel services. Some of the changes include:

* Patented algorithm search applications;
* A true omni-channel experience;
* More efficient follow-the-sun servicing capabilities;
* An enhanced digital hotel booking experience;
* Refined data analytics for greater insight and improving ROI; and
* Dedicated resources and services to enable a safe and secure return to travel.

 “Looking ahead, our focus remains on providing best-in-class travel experiences for our customers and travelers while maintaining strong relationships with our partners, suppliers and other stakeholders. At the same time, we are excited to accelerate our strategic priorities. With travel demand now increasing, the actions we are taking will enable us to build on our industry-leading position,” Michelle added.

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