Wyndham Hotels & Resorts upsizes and reprices term loan, saving $6 million annually

By Bobby Samwell • Tuesday, May 28 15:15 • Permanent Link

Wyndham Hotels & Resorts, Inc. (NYSE: WH) has announced the successful completion of the repricing of its existing $1.1 billion senior secured term loan b facility due May 2030. The repricing has resulted in an upsize of $400 million and an attractive interest rate of secured overnight financing rate (SOFR) plus 1.75%, representing a 60 basis point reduction, at an issue price of 99.875%.

The company expects the repricing to lead to annual interest expense savings of approximately $6 million. This move was made possible by the outstanding performance of the business over the past year and has garnered significant investor demand, reflecting strong confidence in the company's asset-light, highly cash-generative franchise business model.

The net proceeds from this repricing are intended to be used for general corporate purposes, including the repayment of outstanding balances under the company’s revolving credit facility.

In terms of leadership, Michele Allen, the Chief Financial Officer and Head of Strategy, expressed the company's pleasure with the elevated market demand and emphasized that it underscores strong investor confidence in their business model, enabling them to secure best-in-class pricing and further fortify their financial flexibility.

Wells Fargo Securities, LLC acted as the lead arranger, and other institutions such as Deutsche Bank Securities Inc., JPMorgan Chase Bank, N.A., BofA Securities, Inc., Barclays Bank PLC, U.S. Bank National Association, The Bank of Nova Scotia, and Truist Securities, Inc. acted as joint bookrunners.

Wyndham Hotels & Resorts is the world’s largest hotel franchising company by the number of properties, with approximately 9,200 hotels across over 95 countries on six continents. The company operates a portfolio of 25 hotel brands and its award-winning Wyndham Rewards loyalty program offers approximately 108 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts, and vacation rentals globally. The market has reacted to these announcements by moving the company's shares -1.5% to a price of $69.31. If you want to know more, read the company's complete 8-K report here.

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