PARSIPPANY, N.J., May 28, 2024
/PRNewswire/ -- Wyndham Hotels & Resorts,
Inc. (NYSE: WH) (the "Company") today announced that it
successfully completed the repricing of its existing $1.1 billion Senior Secured Term Loan B Facility
due May 2030 (the "Term Loan B"). The
Term Loan B garnered significant investor demand, resulting in an
upsize of $400 million while in
market and an attractive interest rate of Secured Overnight
Financing Rate ("SOFR") plus 1.75%, which represents a 60 basis
point reduction, at an issue price of 99.875% - the tightest priced
new money raise in the entire SOFR era. The repricing on the
existing $1.1 billion Term Loan B is
expected to result in annual interest expense savings of
approximately $6 million. There is no
change to the Company's maturities or covenants from the repricing
on the now combined $1.5 billion
dollar facility.
"The opportunity to reprice this loan with a meaningful spread
reduction and upsize by $400 million
would not have been possible without the outstanding performance of
our business over the past year," said Michele Allen, Chief Financial Officer and Head
of Strategy. "We are extremely pleased with the elevated market
demand, which underscores strong investor confidence in our
asset-light, highly cash-generative franchise business model and
enabled us to secure best-in-class pricing, further fortifying our
financial flexibility."
Wyndham intends to use the net proceeds for general corporate
purposes, including the repayment of outstanding balances under the
Company's revolving credit facility.
Wells Fargo Securities, LLC acted as lead arranger. 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.
About Wyndham Hotels & Resorts
Wyndham Hotels
& Resorts (NYSE: WH) 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. Through
its network of over 876,000 rooms appealing to the everyday
traveler, Wyndham commands a leading presence in the economy and
midscale segments of the lodging industry. The Company operates a
portfolio of 25 hotel brands, including Super 8®, Days Inn®,
Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®,
Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company's
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. For more information, visit
https://investor.wyndhamhotels.com. The Company may use
its website and social media channels as means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD. Disclosures of this
nature will be included on the Company's website in the Investors
section, which can currently be accessed at
https://investor.wyndhamhotels.com or on the Company's social media
channels, including the Company's LinkedIn account which can
currently be accessed at
https://www.linkedin.com/company/wyndhamhotels. Accordingly,
investors should monitor this section of the Company's website and
the Company's social media channels in addition to following the
Company's press releases, filings submitted with the Securities and
Exchange Commission and any public conference calls or
webcasts.
Forward-Looking Statements
This press release
contains "forward-looking statements" within the meaning of federal
securities laws, including statements related to the repricing and
upsizing of our Term Loan B Facility and the use of proceeds
therefrom. All statements other than historical facts are
forward-looking statements. Forward-looking statements include
those that convey management's expectations as to the future based
on plans, estimates and projections at the time Wyndham makes the
statements and may be identified by words such as "will," "expect,"
"believe," "plan," "anticipate," "predict," "intend," "goal,"
"future," "forward," "remain," "outlook," "guidance," "target,"
"objective," "estimate," "projection" and similar words or
expressions, including the negative version of such words and
expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Wyndham to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, without
limitation, general economic conditions, including inflation,
higher interest rates and potential recessionary pressures; global
or regional health crises or pandemics (such as the COVID-19
pandemic) including the resulting impact on Wyndham's business,
operations, financial results, cash flows and liquidity, as well as
the impact on its franchisees, guests and team members, the
hospitality industry and overall demand for and restrictions on
travel; the performance of the financial and credit markets; the
economic environment for the hospitality industry; operating risks
associated with the hotel franchising business; Wyndham's
relationships with franchisees; the impact of war, terrorist
activity, political instability or political strife, including the
ongoing conflicts between Russia
and Ukraine and between
Israel and Hamas, respectively;
Wyndham's ability to satisfy obligations and agreements under its
outstanding indebtedness, including the payment of principal and
interest and compliance with the covenants thereunder; risks
related to Wyndham's ability to obtain financing and the terms of
such financing, including access to liquidity and capital; and
Wyndham's ability to make or pay, plans for and the timing and
amount of any future share repurchases and/or dividends, as well as
the risks described in Wyndham's most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission and any
subsequent reports filed with the Securities and Exchange
Commission. These risks and uncertainties are not the only ones
Wyndham may face and additional risks may arise or become material
in the future. Wyndham undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, subsequent events or otherwise, except as required
by law.
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SOURCE Wyndham Hotels & Resorts