Travel + Leisure Co. (NYSE: TNL) has successfully amended its credit agreement, establishing a new $1 billion revolving credit facility scheduled to mature in June 2030. This refinances the company's previous $1 billion revolving credit facility that was set to mature in October 2026. The seventh amendment to the credit agreement brings several improvements, including a 25 basis points reduction in pricing spreads on borrowings and letters of credit, the elimination of a legacy term SOFR credit spread adjustment, a reduction in the minimum interest coverage ratio, and a reduction in commitment fee pricing spread. Additionally, the seventh amendment expands certain covenants and increases and resets certain incurrence baskets.
Erik Hoag, the Chief Financial Officer of Travel + Leisure Co., expressed satisfaction with the transaction, emphasizing that the improved repricing, greater flexibility, and maturity extension enhance the company's balance sheet and provide financial flexibility to continue executing its growth strategy.
Travel + Leisure Co. (NYSE: TNL) is a leading leisure travel company that provides over six million vacations to travelers globally each year. The company operates a portfolio of vacation ownership, travel club, and lifestyle travel brands, with a focus on meeting the needs of modern leisure travelers. The company's nearly 19,000 dedicated associates worldwide work towards its mission to put the world on vacation. As a result of these announcements, the company's shares have moved 2.24% on the market, and are now trading at a price of $51.54. For the full picture, make sure to review Travel & Leisure's 8-K report.
