Wyndham Hotels and Resorts has completed the refinancing of its previously outstanding senior secured term loan B facility due in May 2025.
It has now closed on a new $1.1bn senior secured term loan B facility which will mature in May 2030. The net proceeds from this new loan were used to repay all outstanding principal under its term loan B due in 2025.
The new term loan B reportedly garnered significant investor demand, resulting in an upsize of $400m and an interest rate of the secured overnight financing rate plus 2.25% (with a 0.10% credit spread adjustment), at an issue price of 99.5%.
The company recently received an investment grade credit rating on its senior secured debt from Fitch Ratings Inc, meaning it now has the ability to access both the high yield and investment grade credit markets for future financings.
Deutsche Bank Securities Inc, J P Morgan Chase Bank N A and B of A Securities Inc acted as joint lead arrangers for the new loan.
Wyndham Hotels and Resorts CFO Michele Allen commented: “With the opportunistic refinancing behind us and a franchised business model that is cash generative, we possess significant financial flexibility to execute on our strategic objectives of delivering value to our guests and franchisees while driving strong shareholder return.”
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Earlier in May 2023, Wyndham expanded the usage of its cloud system to 2000 more hotels under its portfolio to simplify everyday tasks, boost revenue and personalise guest experiences.